Correlation Between Vienna Insurance and VPower Group
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and VPower Group 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 VPower Group 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 VPower Group International, you can compare the effects of market volatilities on Vienna Insurance and VPower Group 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 VPower Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and VPower Group.
Diversification Opportunities for Vienna Insurance and VPower Group
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vienna and VPower is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and VPower Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VPower Group Interna 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 VPower Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VPower Group Interna has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and VPower Group go up and down completely randomly.
Pair Corralation between Vienna Insurance and VPower Group
Assuming the 90 days trading horizon Vienna Insurance is expected to generate 9.34 times less return on investment than VPower Group. But when comparing it to its historical volatility, Vienna Insurance Group is 21.66 times less risky than VPower Group. It trades about 0.16 of its potential returns per unit of risk. VPower Group International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.00 in VPower Group International on October 15, 2024 and sell it today you would earn a total of 0.00 from holding VPower Group International or generate 0.0% 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. VPower Group International
Performance |
| Timeline |
| Vienna Insurance |
| VPower Group Interna |
Vienna Insurance and VPower Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and VPower Group
The main advantage of trading using opposite Vienna Insurance and VPower Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, VPower Group 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 VPower Group will offset losses from the drop in VPower Group's long position.| Vienna Insurance vs. MAGNUM MINING EXP | Vienna Insurance vs. MYFAIR GOLD P | Vienna Insurance vs. SYSTEMAIR AB | Vienna Insurance vs. Alaska Air Group |
| VPower Group vs. Vienna Insurance Group | VPower Group vs. Urban Outfitters | VPower Group vs. REVO INSURANCE SPA | VPower Group vs. Universal Insurance Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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