Correlation Between VIENNA INSURANCE and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on VIENNA INSURANCE and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Federal Agricultural.
Diversification Opportunities for VIENNA INSURANCE and Federal Agricultural
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VIENNA and Federal is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Federal Agricultural go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Federal Agricultural
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.49 times more return on investment than Federal Agricultural. However, VIENNA INSURANCE GR is 2.05 times less risky than Federal Agricultural. It trades about 0.51 of its potential returns per unit of risk. Federal Agricultural Mortgage is currently generating about 0.07 per unit of risk. If you would invest 3,045 in VIENNA INSURANCE GR on November 5, 2024 and sell it today you would earn a total of 190.00 from holding VIENNA INSURANCE GR or generate 6.24% 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. Federal Agricultural Mortgage
Performance |
| Timeline |
| VIENNA INSURANCE |
| Federal Agricultural |
VIENNA INSURANCE and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Federal Agricultural
The main advantage of trading using opposite VIENNA INSURANCE and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| VIENNA INSURANCE vs. Easy Software AG | VIENNA INSURANCE vs. Bio Techne Corp | VIENNA INSURANCE vs. AAC TECHNOLOGHLDGADR | VIENNA INSURANCE vs. PLAYMATES TOYS |
| Federal Agricultural vs. STMICROELECTRONICS | Federal Agricultural vs. Strategic Education | Federal Agricultural vs. Methode Electronics | Federal Agricultural vs. BW OFFSHORE LTD |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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