Correlation Between Vienna Insurance and United Internet
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and United Internet 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 United Internet 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 United Internet AG, you can compare the effects of market volatilities on Vienna Insurance and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and United Internet.
Diversification Opportunities for Vienna Insurance and United Internet
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vienna and United is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and United Internet go up and down completely randomly.
Pair Corralation between Vienna Insurance and United Internet
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.8 times more return on investment than United Internet. However, Vienna Insurance Group is 1.26 times less risky than United Internet. It trades about 0.19 of its potential returns per unit of risk. United Internet AG is currently generating about 0.09 per unit of risk. If you would invest 2,863 in Vienna Insurance Group on September 14, 2024 and sell it today you would earn a total of 100.00 from holding Vienna Insurance Group or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. United Internet AG
Performance |
| Timeline |
| Vienna Insurance |
| United Internet AG |
Vienna Insurance and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and United Internet
The main advantage of trading using opposite Vienna Insurance and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Vienna Insurance vs. European Metals Holdings | Vienna Insurance vs. Odfjell Drilling | Vienna Insurance vs. Aeorema Communications Plc | Vienna Insurance vs. Silvercorp Metals |
| United Internet vs. Tyson Foods Cl | United Internet vs. Virgin Wines UK | United Internet vs. Ebro Foods | United Internet vs. Vienna Insurance Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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