Correlation Between Vienna Insurance and CeoTronics
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and CeoTronics 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 CeoTronics 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 CeoTronics AG, you can compare the effects of market volatilities on Vienna Insurance and CeoTronics 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 CeoTronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and CeoTronics.
Diversification Opportunities for Vienna Insurance and CeoTronics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vienna and CeoTronics is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and CeoTronics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeoTronics AG 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 CeoTronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeoTronics AG has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and CeoTronics go up and down completely randomly.
Pair Corralation between Vienna Insurance and CeoTronics
Assuming the 90 days trading horizon Vienna Insurance is expected to generate 1.41 times less return on investment than CeoTronics. But when comparing it to its historical volatility, Vienna Insurance Group is 1.94 times less risky than CeoTronics. It trades about 0.05 of its potential returns per unit of risk. CeoTronics AG is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 441.00 in CeoTronics AG on October 14, 2024 and sell it today you would earn a total of 169.00 from holding CeoTronics AG or generate 38.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. CeoTronics AG
Performance |
| Timeline |
| Vienna Insurance |
| CeoTronics AG |
Vienna Insurance and CeoTronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and CeoTronics
The main advantage of trading using opposite Vienna Insurance and CeoTronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, CeoTronics 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 CeoTronics will offset losses from the drop in CeoTronics' long position.| Vienna Insurance vs. GLOBUS MEDICAL A | Vienna Insurance vs. SPECTRAL MEDICAL | Vienna Insurance vs. SERI INDUSTRIAL EO | Vienna Insurance vs. ARDAGH METAL PACDL 0001 |
| CeoTronics vs. THAI BEVERAGE | CeoTronics vs. Goosehead Insurance | CeoTronics vs. SBI Insurance Group | CeoTronics 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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