Correlation Between Vienna Insurance and RATH Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and RATH Aktiengesellscha 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 RATH Aktiengesellscha 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 RATH Aktiengesellschaft, you can compare the effects of market volatilities on Vienna Insurance and RATH Aktiengesellscha 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 RATH Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and RATH Aktiengesellscha.
Diversification Opportunities for Vienna Insurance and RATH Aktiengesellscha
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and RATH is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and RATH Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATH Aktiengesellschaft 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 RATH Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATH Aktiengesellschaft has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and RATH Aktiengesellscha go up and down completely randomly.
Pair Corralation between Vienna Insurance and RATH Aktiengesellscha
Assuming the 90 days trading horizon Vienna Insurance Group is expected to under-perform the RATH Aktiengesellscha. In addition to that, Vienna Insurance is 2.04 times more volatile than RATH Aktiengesellschaft. It trades about -0.18 of its total potential returns per unit of risk. RATH Aktiengesellschaft is currently generating about 0.0 per unit of volatility. If you would invest 2,500 in RATH Aktiengesellschaft on August 26, 2024 and sell it today you would earn a total of 0.00 from holding RATH Aktiengesellschaft or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vienna Insurance Group vs. RATH Aktiengesellschaft
Performance |
| Timeline |
| Vienna Insurance |
| RATH Aktiengesellschaft |
Vienna Insurance and RATH Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and RATH Aktiengesellscha
The main advantage of trading using opposite Vienna Insurance and RATH Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, RATH Aktiengesellscha 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 RATH Aktiengesellscha will offset losses from the drop in RATH Aktiengesellscha'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 |
| RATH Aktiengesellscha vs. AMAG Austria Metall | RATH Aktiengesellscha vs. Addiko Bank AG | RATH Aktiengesellscha vs. BKS Bank AG | RATH Aktiengesellscha vs. Vienna Insurance Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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