Correlation Between Vienna Insurance and RCI Hospitality
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and RCI Hospitality 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 RCI Hospitality 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 RCI Hospitality Holdings, you can compare the effects of market volatilities on Vienna Insurance and RCI Hospitality 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 RCI Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and RCI Hospitality.
Diversification Opportunities for Vienna Insurance and RCI Hospitality
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vienna and RCI is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and RCI Hospitality Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCI Hospitality 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 RCI Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCI Hospitality Holdings has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and RCI Hospitality go up and down completely randomly.
Pair Corralation between Vienna Insurance and RCI Hospitality
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.58 times more return on investment than RCI Hospitality. However, Vienna Insurance Group is 1.73 times less risky than RCI Hospitality. It trades about 0.33 of its potential returns per unit of risk. RCI Hospitality Holdings is currently generating about -0.07 per unit of risk. If you would invest 3,045 in Vienna Insurance Group on November 5, 2024 and sell it today you would earn a total of 195.00 from holding Vienna Insurance Group or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. RCI Hospitality Holdings
Performance |
| Timeline |
| Vienna Insurance |
| RCI Hospitality Holdings |
Vienna Insurance and RCI Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and RCI Hospitality
The main advantage of trading using opposite Vienna Insurance and RCI Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, RCI Hospitality 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 RCI Hospitality will offset losses from the drop in RCI Hospitality's long position.| Vienna Insurance vs. X FAB Silicon Foundries | Vienna Insurance vs. GALENA MINING LTD | Vienna Insurance vs. Ringmetall SE | Vienna Insurance vs. X FAB Silicon Foundries |
| RCI Hospitality vs. SIVERS SEMICONDUCTORS AB | RCI Hospitality vs. NorAm Drilling AS | RCI Hospitality vs. Volkswagen AG | RCI Hospitality vs. Darden Restaurants |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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