Correlation Between VIENNA INSURANCE and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Yuexiu Transport 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on VIENNA INSURANCE and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Yuexiu Transport.
Diversification Opportunities for VIENNA INSURANCE and Yuexiu Transport
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between VIENNA and Yuexiu is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Yuexiu Transport go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Yuexiu Transport
Assuming the 90 days trading horizon VIENNA INSURANCE is expected to generate 1.41 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, VIENNA INSURANCE GR is 2.7 times less risky than Yuexiu Transport. It trades about 0.27 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Yuexiu Transport Infrastructure on October 13, 2024 and sell it today you would earn a total of 2.00 from holding Yuexiu Transport Infrastructure or generate 4.55% 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. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| VIENNA INSURANCE |
| Yuexiu Transport Inf |
VIENNA INSURANCE and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Yuexiu Transport
The main advantage of trading using opposite VIENNA INSURANCE and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| VIENNA INSURANCE vs. Yuexiu Transport Infrastructure | VIENNA INSURANCE vs. COLUMBIA SPORTSWEAR | VIENNA INSURANCE vs. Genertec Universal Medical | VIENNA INSURANCE vs. GRENKELEASING Dusseldorf |
| Yuexiu Transport vs. KINGBOARD CHEMICAL | Yuexiu Transport vs. THRACE PLASTICS | Yuexiu Transport vs. TIANDE CHEMICAL | Yuexiu Transport vs. TRI CHEMICAL LABORATINC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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