Correlation Between Vienna Insurance and Prosafe SE
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Prosafe SE 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 Prosafe SE 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 Prosafe SE, you can compare the effects of market volatilities on Vienna Insurance and Prosafe SE 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 Prosafe SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Prosafe SE.
Diversification Opportunities for Vienna Insurance and Prosafe SE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vienna and Prosafe is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Prosafe SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosafe SE 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 Prosafe SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosafe SE has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Prosafe SE go up and down completely randomly.
Pair Corralation between Vienna Insurance and Prosafe SE
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.17 times more return on investment than Prosafe SE. However, Vienna Insurance Group is 5.82 times less risky than Prosafe SE. It trades about 0.06 of its potential returns per unit of risk. Prosafe SE is currently generating about -0.04 per unit of risk. If you would invest 2,250 in Vienna Insurance Group on October 26, 2024 and sell it today you would earn a total of 870.00 from holding Vienna Insurance Group or generate 38.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Prosafe SE
Performance |
| Timeline |
| Vienna Insurance |
| Prosafe SE |
Vienna Insurance and Prosafe SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Prosafe SE
The main advantage of trading using opposite Vienna Insurance and Prosafe SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Prosafe SE 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 Prosafe SE will offset losses from the drop in Prosafe SE's long position.| Vienna Insurance vs. Elmos Semiconductor SE | Vienna Insurance vs. HEALTHSTREAM | Vienna Insurance vs. Taiwan Semiconductor Manufacturing | Vienna Insurance vs. RCI Hospitality Holdings |
| Prosafe SE vs. GALENA MINING LTD | Prosafe SE vs. Magic Software Enterprises | Prosafe SE vs. MAG SILVER | Prosafe SE vs. CyberArk Software |
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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