Correlation Between VIENNA INSURANCE and Siemens Energy
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Siemens Energy 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 Siemens Energy 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 Siemens Energy AG, you can compare the effects of market volatilities on VIENNA INSURANCE and Siemens Energy 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 Siemens Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Siemens Energy.
Diversification Opportunities for VIENNA INSURANCE and Siemens Energy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between VIENNA and Siemens is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Siemens Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Energy AG 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 Siemens Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Energy AG has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Siemens Energy go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Siemens Energy
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.17 times more return on investment than Siemens Energy. However, VIENNA INSURANCE GR is 6.0 times less risky than Siemens Energy. It trades about 0.05 of its potential returns per unit of risk. Siemens Energy AG is currently generating about -0.07 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 Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Siemens Energy AG
Performance |
| Timeline |
| VIENNA INSURANCE |
| Siemens Energy AG |
VIENNA INSURANCE and Siemens Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Siemens Energy
The main advantage of trading using opposite VIENNA INSURANCE and Siemens Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Siemens Energy 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 Siemens Energy will offset losses from the drop in Siemens Energy's long position.| VIENNA INSURANCE vs. T Mobile | VIENNA INSURANCE vs. MOBILE FACTORY INC | VIENNA INSURANCE vs. ALBIS LEASING AG | VIENNA INSURANCE vs. LOANDEPOT INC A |
| Siemens Energy vs. Insurance Australia Group | Siemens Energy vs. VIENNA INSURANCE GR | Siemens Energy vs. Japan Post Insurance | Siemens Energy vs. Singapore Telecommunications Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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