Correlation Between Vienna Insurance and SOLSTAD OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE NK, you can compare the effects of market volatilities on Vienna Insurance and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and SOLSTAD OFFSHORE.
Diversification Opportunities for Vienna Insurance and SOLSTAD OFFSHORE
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vienna and SOLSTAD is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and SOLSTAD OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOLSTAD OFFSHORE has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and SOLSTAD OFFSHORE go up and down completely randomly.
Pair Corralation between Vienna Insurance and SOLSTAD OFFSHORE
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.53 times more return on investment than SOLSTAD OFFSHORE. However, Vienna Insurance Group is 1.9 times less risky than SOLSTAD OFFSHORE. It trades about 0.26 of its potential returns per unit of risk. SOLSTAD OFFSHORE NK is currently generating about -0.09 per unit of risk. If you would invest 3,035 in Vienna Insurance Group on November 3, 2024 and sell it today you would earn a total of 165.00 from holding Vienna Insurance Group or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. SOLSTAD OFFSHORE NK
Performance |
| Timeline |
| Vienna Insurance |
| SOLSTAD OFFSHORE |
Vienna Insurance and SOLSTAD OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and SOLSTAD OFFSHORE
The main advantage of trading using opposite Vienna Insurance and SOLSTAD OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE will offset losses from the drop in SOLSTAD OFFSHORE's long position.| Vienna Insurance vs. JD SPORTS FASH | Vienna Insurance vs. NTG Nordic Transport | Vienna Insurance vs. BII Railway Transportation | Vienna Insurance vs. Pebblebrook Hotel Trust |
| SOLSTAD OFFSHORE vs. Martin Marietta Materials | SOLSTAD OFFSHORE vs. The Boston Beer | SOLSTAD OFFSHORE vs. APPLIED MATERIALS | SOLSTAD OFFSHORE vs. Compagnie Plastic Omnium |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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