Correlation Between VIENNA INSURANCE and Meta Financial
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Meta Financial 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 Meta Financial 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 Meta Financial Group, you can compare the effects of market volatilities on VIENNA INSURANCE and Meta Financial 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 Meta Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Meta Financial.
Diversification Opportunities for VIENNA INSURANCE and Meta Financial
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between VIENNA and Meta is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Meta Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Financial 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 Meta Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Financial Group has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Meta Financial go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Meta Financial
Assuming the 90 days trading horizon VIENNA INSURANCE is expected to generate 1.36 times less return on investment than Meta Financial. But when comparing it to its historical volatility, VIENNA INSURANCE GR is 2.53 times less risky than Meta Financial. It trades about 0.51 of its potential returns per unit of risk. Meta Financial Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 7,150 in Meta Financial Group on November 5, 2024 and sell it today you would earn a total of 600.00 from holding Meta Financial Group or generate 8.39% 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. Meta Financial Group
Performance |
| Timeline |
| VIENNA INSURANCE |
| Meta Financial Group |
VIENNA INSURANCE and Meta Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Meta Financial
The main advantage of trading using opposite VIENNA INSURANCE and Meta Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Meta Financial 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 Meta Financial will offset losses from the drop in Meta Financial's long position.| VIENNA INSURANCE vs. TYSON FOODS A | VIENNA INSURANCE vs. SBM OFFSHORE | VIENNA INSURANCE vs. Tyson Foods | VIENNA INSURANCE vs. SOLSTAD OFFSHORE NK |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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