Correlation Between XLMedia PLC and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Vienna Insurance 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 XLMedia PLC and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Vienna Insurance Group, you can compare the effects of market volatilities on XLMedia PLC and Vienna Insurance 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 XLMedia PLC with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Vienna Insurance.
Diversification Opportunities for XLMedia PLC and Vienna Insurance
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XLMedia and Vienna is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Vienna Insurance go up and down completely randomly.
Pair Corralation between XLMedia PLC and Vienna Insurance
Assuming the 90 days trading horizon XLMedia PLC is expected to under-perform the Vienna Insurance. In addition to that, XLMedia PLC is 7.16 times more volatile than Vienna Insurance Group. It trades about -0.19 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.2 per unit of volatility. If you would invest 2,875 in Vienna Insurance Group on September 18, 2024 and sell it today you would earn a total of 85.00 from holding Vienna Insurance Group or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Vienna Insurance Group
Performance |
| Timeline |
| XLMedia PLC |
| Vienna Insurance |
XLMedia PLC and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Vienna Insurance
The main advantage of trading using opposite XLMedia PLC and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| XLMedia PLC vs. Berkshire Hathaway | XLMedia PLC vs. Hyundai Motor | XLMedia PLC vs. Samsung Electronics Co | XLMedia PLC vs. Samsung Electronics Co |
| Vienna Insurance vs. Centaur Media | Vienna Insurance vs. Axway Software SA | Vienna Insurance vs. G5 Entertainment AB | Vienna Insurance vs. XLMedia PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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