Correlation Between Vienna Insurance and Exor NV
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Exor NV at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vienna Insurance and Exor NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vienna Insurance Group and Exor NV, you can compare the effects of market volatilities on Vienna Insurance and Exor NV and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vienna Insurance with a short position of Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Exor NV.
Diversification Opportunities for Vienna Insurance and Exor NV
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and Exor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV and Vienna Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vienna Insurance Group are associated (or correlated) with Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Exor NV go up and down completely randomly.
Pair Corralation between Vienna Insurance and Exor NV
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.81 times more return on investment than Exor NV. However, Vienna Insurance Group is 1.23 times less risky than Exor NV. It trades about 0.12 of its potential returns per unit of risk. Exor NV is currently generating about 0.09 per unit of risk. If you would invest 2,865 in Vienna Insurance Group on September 14, 2024 and sell it today you would earn a total of 55.00 from holding Vienna Insurance Group or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vienna Insurance Group vs. Exor NV
Performance |
| Timeline |
| Vienna Insurance |
| Exor NV |
Vienna Insurance and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Exor NV
The main advantage of trading using opposite Vienna Insurance and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Exor NV can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Exor NV will offset losses from the drop in Exor NV's long position.| Vienna Insurance vs. Erste Group Bank | Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG |
| Exor NV vs. Vienna Insurance Group | Exor NV vs. Raiffeisen Bank International | Exor NV vs. BKS Bank AG | Exor NV vs. SBM Offshore NV |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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