Correlation Between Vienna Insurance and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on Vienna Insurance and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Mitsubishi Gas.
Diversification Opportunities for Vienna Insurance and Mitsubishi Gas
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vienna and Mitsubishi is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between Vienna Insurance and Mitsubishi Gas
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.69 times more return on investment than Mitsubishi Gas. However, Vienna Insurance Group is 1.45 times less risky than Mitsubishi Gas. It trades about 0.37 of its potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about -0.1 per unit of risk. If you would invest 3,020 in Vienna Insurance Group on November 4, 2024 and sell it today you would earn a total of 220.00 from holding Vienna Insurance Group or generate 7.28% 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. Mitsubishi Gas Chemical
Performance |
| Timeline |
| Vienna Insurance |
| Mitsubishi Gas Chemical |
Vienna Insurance and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Mitsubishi Gas
The main advantage of trading using opposite Vienna Insurance and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' long position.| Vienna Insurance vs. PATTIES FOODS | Vienna Insurance vs. Alaska Air Group | Vienna Insurance vs. Fair Isaac Corp | Vienna Insurance vs. FORWARD AIR P |
| Mitsubishi Gas vs. Avanos Medical | Mitsubishi Gas vs. Elmos Semiconductor SE | Mitsubishi Gas vs. CompuGroup Medical SE | Mitsubishi Gas vs. MagnaChip Semiconductor Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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