Correlation Between Vienna Insurance and Nisshinbo Holdings
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Nisshinbo Holdings 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 Nisshinbo Holdings 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 Nisshinbo Holdings, you can compare the effects of market volatilities on Vienna Insurance and Nisshinbo Holdings 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 Nisshinbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Nisshinbo Holdings.
Diversification Opportunities for Vienna Insurance and Nisshinbo Holdings
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vienna and Nisshinbo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Nisshinbo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisshinbo Holdings 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 Nisshinbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisshinbo Holdings has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Nisshinbo Holdings go up and down completely randomly.
Pair Corralation between Vienna Insurance and Nisshinbo Holdings
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.77 times more return on investment than Nisshinbo Holdings. However, Vienna Insurance Group is 1.3 times less risky than Nisshinbo Holdings. It trades about 0.05 of its potential returns per unit of risk. Nisshinbo Holdings is currently generating about -0.01 per unit of risk. If you would invest 2,259 in Vienna Insurance Group on October 13, 2024 and sell it today you would earn a total of 771.00 from holding Vienna Insurance Group or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Vienna Insurance Group vs. Nisshinbo Holdings
Performance |
| Timeline |
| Vienna Insurance |
| Nisshinbo Holdings |
Vienna Insurance and Nisshinbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Nisshinbo Holdings
The main advantage of trading using opposite Vienna Insurance and Nisshinbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Nisshinbo Holdings 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 Nisshinbo Holdings will offset losses from the drop in Nisshinbo Holdings' 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 |
| Nisshinbo Holdings vs. Vienna Insurance Group | Nisshinbo Holdings vs. Zurich Insurance Group | Nisshinbo Holdings vs. REVO INSURANCE SPA | Nisshinbo Holdings vs. PENN Entertainment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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