Correlation Between Volkswagen and Singapore Reinsurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Volkswagen AG VZO and Singapore Reinsurance, you can compare the effects of market volatilities on Volkswagen and Singapore Reinsurance 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 Volkswagen with a short position of Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volkswagen and Singapore Reinsurance.
Diversification Opportunities for Volkswagen and Singapore Reinsurance
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Volkswagen and Singapore is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG VZO and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance and Volkswagen 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 Volkswagen AG VZO are associated (or correlated) with Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of Volkswagen i.e., Volkswagen and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between Volkswagen and Singapore Reinsurance
Assuming the 90 days trading horizon Volkswagen AG VZO is expected to under-perform the Singapore Reinsurance. But the stock apears to be less risky and, when comparing its historical volatility, Volkswagen AG VZO is 2.02 times less risky than Singapore Reinsurance. The stock trades about -0.3 of its potential returns per unit of risk. The Singapore Reinsurance is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,140 in Singapore Reinsurance on September 1, 2024 and sell it today you would earn a total of 340.00 from holding Singapore Reinsurance or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Volkswagen AG VZO vs. Singapore Reinsurance
Performance |
| Timeline |
| Volkswagen AG VZO |
| Singapore Reinsurance |
Volkswagen and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volkswagen and Singapore Reinsurance
The main advantage of trading using opposite Volkswagen and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen position performs unexpectedly, Singapore Reinsurance 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 Singapore Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.The idea behind Volkswagen AG VZO and Singapore Reinsurance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |