Correlation Between VIENNA INSURANCE and China BlueChemical
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and China BlueChemical 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 China BlueChemical 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 China BlueChemical, you can compare the effects of market volatilities on VIENNA INSURANCE and China BlueChemical 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 China BlueChemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and China BlueChemical.
Diversification Opportunities for VIENNA INSURANCE and China BlueChemical
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between VIENNA and China is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and China BlueChemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China BlueChemical 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 China BlueChemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China BlueChemical has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and China BlueChemical go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and China BlueChemical
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.3 times more return on investment than China BlueChemical. However, VIENNA INSURANCE GR is 3.38 times less risky than China BlueChemical. It trades about 0.19 of its potential returns per unit of risk. China BlueChemical is currently generating about 0.01 per unit of risk. If you would invest 2,925 in VIENNA INSURANCE GR on September 24, 2024 and sell it today you would earn a total of 90.00 from holding VIENNA INSURANCE GR or generate 3.08% 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. China BlueChemical
Performance |
| Timeline |
| VIENNA INSURANCE |
| China BlueChemical |
VIENNA INSURANCE and China BlueChemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and China BlueChemical
The main advantage of trading using opposite VIENNA INSURANCE and China BlueChemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, China BlueChemical 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 China BlueChemical will offset losses from the drop in China BlueChemical's long position.| VIENNA INSURANCE vs. CVW CLEANTECH INC | VIENNA INSURANCE vs. SCANDMEDICAL SOLDK 040 | VIENNA INSURANCE vs. Cleanaway Waste Management | VIENNA INSURANCE vs. AVITA Medical |
| China BlueChemical vs. Salesforce | China BlueChemical vs. UNIQA INSURANCE GR | China BlueChemical vs. SBI Insurance Group | China BlueChemical vs. VIENNA INSURANCE GR |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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