Correlation Between VIENNA INSURANCE and Gemfields Group
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Gemfields Group 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 Gemfields Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIENNA INSURANCE GR and Gemfields Group Limited, you can compare the effects of market volatilities on VIENNA INSURANCE and Gemfields Group 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 Gemfields Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Gemfields Group.
Diversification Opportunities for VIENNA INSURANCE and Gemfields Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VIENNA and Gemfields is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Gemfields Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group 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 GR are associated (or correlated) with Gemfields Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Gemfields Group go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Gemfields Group
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.05 times more return on investment than Gemfields Group. However, VIENNA INSURANCE GR is 18.82 times less risky than Gemfields Group. It trades about 0.05 of its potential returns per unit of risk. Gemfields Group Limited is currently generating about -0.01 per unit of risk. If you would invest 3,020 in VIENNA INSURANCE GR on October 16, 2024 and sell it today you would earn a total of 10.00 from holding VIENNA INSURANCE GR or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Gemfields Group Limited
Performance |
| Timeline |
| VIENNA INSURANCE |
| Gemfields Group |
VIENNA INSURANCE and Gemfields Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Gemfields Group
The main advantage of trading using opposite VIENNA INSURANCE and Gemfields Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Gemfields Group 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 Gemfields Group will offset losses from the drop in Gemfields Group's long position.| VIENNA INSURANCE vs. Scottish Mortgage Investment | VIENNA INSURANCE vs. SEI INVESTMENTS | VIENNA INSURANCE vs. WT OFFSHORE | VIENNA INSURANCE vs. Virtus Investment Partners |
| Gemfields Group vs. VIENNA INSURANCE GR | Gemfields Group vs. UNIQA INSURANCE GR | Gemfields Group vs. ZURICH INSURANCE GROUP | Gemfields Group vs. WILLIS LEASE FIN |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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