Correlation Between VIENNA INSURANCE and Performance Food
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Performance Food 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 Performance Food 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 Performance Food Group, you can compare the effects of market volatilities on VIENNA INSURANCE and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Performance Food.
Diversification Opportunities for VIENNA INSURANCE and Performance Food
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between VIENNA and Performance is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Performance Food go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Performance Food
Assuming the 90 days trading horizon VIENNA INSURANCE is expected to generate 1.33 times less return on investment than Performance Food. But when comparing it to its historical volatility, VIENNA INSURANCE GR is 1.79 times less risky than Performance Food. It trades about 0.22 of its potential returns per unit of risk. Performance Food Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 7,800 in Performance Food Group on October 19, 2024 and sell it today you would earn a total of 600.00 from holding Performance Food Group or generate 7.69% 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. Performance Food Group
Performance |
| Timeline |
| VIENNA INSURANCE |
| Performance Food |
VIENNA INSURANCE and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Performance Food
The main advantage of trading using opposite VIENNA INSURANCE and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| VIENNA INSURANCE vs. Warner Music Group | VIENNA INSURANCE vs. T MOBILE INCDL 00001 | VIENNA INSURANCE vs. Charter Communications | VIENNA INSURANCE vs. United Utilities Group |
| Performance Food vs. Lendlease Group | Performance Food vs. INSURANCE AUST GRP | Performance Food vs. Mitsui Chemicals | Performance Food 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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