Correlation Between VIB Vermgen and W R

Can any of the company-specific risk be diversified away by investing in both VIB Vermgen and W R 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 VIB Vermgen and W R into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VIB Vermgen AG and W R Berkley, you can compare the effects of market volatilities on VIB Vermgen and W R 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 VIB Vermgen with a short position of W R. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIB Vermgen and W R.

Diversification Opportunities for VIB Vermgen and W R

-0.54

Correlation Coefficient

VIB Vermgen  W R

Excellent diversification

The 3 months correlation between VIB and WR1 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding VIB Vermgen AG and W R Berkley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on W R Berkley and VIB Vermgen 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 VIB Vermgen AG are associated (or correlated) with W R. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of W R Berkley has no effect on the direction of VIB Vermgen i.e., VIB Vermgen and W R go up and down completely randomly.

Pair Corralation between VIB Vermgen and W R

Assuming the 90 days trading horizon VIB Vermgen AG is expected to under-perform the W R. But the stock apears to be less risky and, when comparing its historical volatility, VIB Vermgen AG is 1.69 times less risky than W R. The stock trades about -0.52 of its potential returns per unit of risk. The W R Berkley is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  5,598  in W R Berkley on October 22, 2024 and sell it today you would earn a total of  248.00  from holding W R Berkley or generate 4.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

VIB Vermgen AG  vs.  W R Berkley

VIB Vermgen AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VIB Vermgen AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

W R Berkley

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in W R Berkley are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, W R is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VIB Vermgen and W R

The main advantage of trading using opposite VIB Vermgen and W R positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIB Vermgen position performs unexpectedly, W R 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 W R will offset losses from the drop in W R's long position.

The idea behind VIB Vermgen AG and W R Berkley pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.