Correlation Between Vienna Insurance and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and VIENNA INSURANCE 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 VIENNA INSURANCE 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 VIENNA INSURANCE GR, you can compare the effects of market volatilities on Vienna Insurance and VIENNA INSURANCE 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 VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and VIENNA INSURANCE.
Diversification Opportunities for Vienna Insurance and VIENNA INSURANCE
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vienna and VIENNA is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE 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 VIENNA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIENNA INSURANCE has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between Vienna Insurance and VIENNA INSURANCE
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 1.45 times more return on investment than VIENNA INSURANCE. However, Vienna Insurance is 1.45 times more volatile than VIENNA INSURANCE GR. It trades about 0.05 of its potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.08 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 Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| Vienna Insurance |
| VIENNA INSURANCE |
Vienna Insurance and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and VIENNA INSURANCE
The main advantage of trading using opposite Vienna Insurance and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, VIENNA INSURANCE 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 VIENNA INSURANCE will offset losses from the drop in VIENNA INSURANCE's 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 |
| VIENNA INSURANCE vs. Yuexiu Transport Infrastructure | VIENNA INSURANCE vs. COLUMBIA SPORTSWEAR | VIENNA INSURANCE vs. Genertec Universal Medical | VIENNA INSURANCE vs. GRENKELEASING Dusseldorf |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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