Correlation Between VIENNA INSURANCE and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on VIENNA INSURANCE and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and PLAYTIKA HOLDING.
Diversification Opportunities for VIENNA INSURANCE and PLAYTIKA HOLDING
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VIENNA and PLAYTIKA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and PLAYTIKA HOLDING
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.28 times more return on investment than PLAYTIKA HOLDING. However, VIENNA INSURANCE GR is 3.61 times less risky than PLAYTIKA HOLDING. It trades about 0.31 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.36 per unit of risk. If you would invest 2,930 in VIENNA INSURANCE GR on October 11, 2024 and sell it today you would earn a total of 115.00 from holding VIENNA INSURANCE GR or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| VIENNA INSURANCE |
| PLAYTIKA HOLDING |
VIENNA INSURANCE and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and PLAYTIKA HOLDING
The main advantage of trading using opposite VIENNA INSURANCE and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| VIENNA INSURANCE vs. OURGAME INTHOLDL 00005 | VIENNA INSURANCE vs. Zoom Video Communications | VIENNA INSURANCE vs. FIH MOBILE | VIENNA INSURANCE vs. GAMING FAC SA |
| PLAYTIKA HOLDING vs. Lifeway Foods | PLAYTIKA HOLDING vs. PREMIER FOODS | PLAYTIKA HOLDING vs. VIRGIN WINES UK | PLAYTIKA HOLDING vs. DALATA HOTEL |
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.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |