Correlation Between VIENNA INSURANCE and Methode Electronics
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Methode Electronics 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 Methode Electronics 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 Methode Electronics, you can compare the effects of market volatilities on VIENNA INSURANCE and Methode Electronics 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 Methode Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Methode Electronics.
Diversification Opportunities for VIENNA INSURANCE and Methode Electronics
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VIENNA and Methode is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Methode Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methode Electronics 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 Methode Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methode Electronics has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Methode Electronics go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Methode Electronics
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.14 times more return on investment than Methode Electronics. However, VIENNA INSURANCE GR is 7.1 times less risky than Methode Electronics. It trades about 0.43 of its potential returns per unit of risk. Methode Electronics is currently generating about 0.06 per unit of risk. If you would invest 3,015 in VIENNA INSURANCE GR on October 22, 2024 and sell it today you would earn a total of 100.00 from holding VIENNA INSURANCE GR or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Methode Electronics
Performance |
| Timeline |
| VIENNA INSURANCE |
| Methode Electronics |
VIENNA INSURANCE and Methode Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Methode Electronics
The main advantage of trading using opposite VIENNA INSURANCE and Methode Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Methode Electronics 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 Methode Electronics will offset losses from the drop in Methode Electronics' long position.| VIENNA INSURANCE vs. Cleanaway Waste Management | VIENNA INSURANCE vs. MOVIE GAMES SA | VIENNA INSURANCE vs. DETALION GAMES SA | VIENNA INSURANCE vs. Scientific Games |
| Methode Electronics vs. Constellation Software | Methode Electronics vs. MAGIC SOFTWARE ENTR | Methode Electronics vs. Reinsurance Group of | Methode Electronics 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |