Correlation Between Monks Investment and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Monks Investment 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 Monks Investment and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monks Investment Trust and Vienna Insurance Group, you can compare the effects of market volatilities on Monks Investment 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 Monks Investment with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Vienna Insurance.
Diversification Opportunities for Monks Investment and Vienna Insurance
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Monks and Vienna is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Monks Investment 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 Monks Investment Trust 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 Monks Investment i.e., Monks Investment and Vienna Insurance go up and down completely randomly.
Pair Corralation between Monks Investment and Vienna Insurance
Assuming the 90 days trading horizon Monks Investment Trust is expected to under-perform the Vienna Insurance. In addition to that, Monks Investment is 1.14 times more volatile than Vienna Insurance Group. It trades about -0.06 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.44 per unit of volatility. 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 |
Monks Investment Trust vs. Vienna Insurance Group
Performance |
Timeline |
Monks Investment Trust |
Vienna Insurance |
Monks Investment and Vienna Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Monks Investment and Vienna Insurance
The main advantage of trading using opposite Monks Investment and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment 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.Monks Investment vs. BlackRock Frontiers Investment | Monks Investment vs. Seraphim Space Investment | Monks Investment vs. Scottish American Investment | Monks Investment vs. Monster Beverage Corp |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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