Correlation Between VIENNA INSURANCE and Lendlease
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on VIENNA INSURANCE and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Lendlease.
Diversification Opportunities for VIENNA INSURANCE and Lendlease
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VIENNA and Lendlease is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Lendlease go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Lendlease
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.37 times more return on investment than Lendlease. However, VIENNA INSURANCE GR is 2.69 times less risky than Lendlease. It trades about 0.26 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.16 per unit of risk. If you would invest 2,925 in VIENNA INSURANCE GR on October 26, 2024 and sell it today you would earn a total of 195.00 from holding VIENNA INSURANCE GR or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Lendlease Group
Performance |
| Timeline |
| VIENNA INSURANCE |
| Lendlease Group |
VIENNA INSURANCE and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Lendlease
The main advantage of trading using opposite VIENNA INSURANCE and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| VIENNA INSURANCE vs. Apple Inc | VIENNA INSURANCE vs. Apple Inc | VIENNA INSURANCE vs. Apple Inc | VIENNA INSURANCE vs. Apple Inc |
| Lendlease vs. VIENNA INSURANCE GR | Lendlease vs. Sims Metal Management | Lendlease vs. Corporate Travel Management | Lendlease vs. United Insurance Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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