Correlation Between Yuexiu Transport and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Vienna Insurance Group, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Vienna Insurance.
Diversification Opportunities for Yuexiu Transport and Vienna Insurance
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuexiu and Vienna is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Vienna Insurance go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Vienna Insurance
Assuming the 90 days horizon Yuexiu Transport is expected to generate 7.84 times less return on investment than Vienna Insurance. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 12.95 times less risky than Vienna Insurance. It trades about 0.12 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,058 in Vienna Insurance Group on September 8, 2025 and sell it today you would earn a total of 126.00 from holding Vienna Insurance Group or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Vienna Insurance Group
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Vienna Insurance |
Yuexiu Transport and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Vienna Insurance
The main advantage of trading using opposite Yuexiu Transport and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Atlas Arteria Limited | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway |
| Vienna Insurance vs. Berkshire Hathaway | Vienna Insurance vs. Allianz SE | Vienna Insurance vs. Allianz SE ADR | Vienna Insurance vs. Axa SA ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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