Correlation Between Vienna Insurance and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance, you can compare the effects of market volatilities on Vienna Insurance and Singapore Reinsurance 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 Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Singapore Reinsurance.
Diversification Opportunities for Vienna Insurance and Singapore Reinsurance
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vienna and Singapore is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance 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 Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between Vienna Insurance and Singapore Reinsurance
Assuming the 90 days trading horizon Vienna Insurance is expected to generate 1.37 times less return on investment than Singapore Reinsurance. But when comparing it to its historical volatility, Vienna Insurance Group is 1.99 times less risky than Singapore Reinsurance. It trades about 0.21 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,480 in Singapore Reinsurance on October 11, 2024 and sell it today you would earn a total of 140.00 from holding Singapore Reinsurance or generate 4.02% 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. Singapore Reinsurance
Performance |
| Timeline |
| Vienna Insurance |
| Singapore Reinsurance |
Vienna Insurance and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Singapore Reinsurance
The main advantage of trading using opposite Vienna Insurance and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Singapore Reinsurance 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 Singapore Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| Vienna Insurance vs. Tyson Foods | Vienna Insurance vs. United Natural Foods | Vienna Insurance vs. PLANT VEDA FOODS | Vienna Insurance vs. UNIDOC HEALTH P |
| Singapore Reinsurance vs. Compagnie Plastic Omnium | Singapore Reinsurance vs. APPLIED MATERIALS | Singapore Reinsurance vs. Martin Marietta Materials | Singapore Reinsurance vs. SANOK RUBBER ZY |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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