Correlation Between Vienna Insurance and Monks Investment
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Monks Investment 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 Monks Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vienna Insurance Group and Monks Investment Trust, you can compare the effects of market volatilities on Vienna Insurance and Monks Investment 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 Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Monks Investment.
Diversification Opportunities for Vienna Insurance and Monks Investment
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vienna and Monks is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks Investment Trust 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 Group are associated (or correlated) with Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Monks Investment go up and down completely randomly.
Pair Corralation between Vienna Insurance and Monks Investment
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.88 times more return on investment than Monks Investment. However, Vienna Insurance Group is 1.14 times less risky than Monks Investment. It trades about 0.44 of its potential returns per unit of risk. Monks Investment Trust is currently generating about -0.06 per unit of risk. If you would invest 3,020 in Vienna Insurance Group on December 30, 2024 and sell it today you would earn a total of 1,105 from holding Vienna Insurance Group or generate 36.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vienna Insurance Group vs. Monks Investment Trust
Performance |
Timeline |
Vienna Insurance |
Monks Investment Trust |
Vienna Insurance and Monks Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vienna Insurance and Monks Investment
The main advantage of trading using opposite Vienna Insurance and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Monks Investment 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 Monks Investment will offset losses from the drop in Monks Investment's long position.Vienna Insurance vs. Austevoll Seafood ASA | Vienna Insurance vs. Spire Healthcare Group | Vienna Insurance vs. CVS Health Corp | Vienna Insurance vs. Associated British Foods |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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