Correlation Between Vienna Insurance and DXC Technology
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and DXC Technology 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 DXC Technology 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 DXC Technology Co, you can compare the effects of market volatilities on Vienna Insurance and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and DXC Technology.
Diversification Opportunities for Vienna Insurance and DXC Technology
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vienna and DXC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and DXC Technology go up and down completely randomly.
Pair Corralation between Vienna Insurance and DXC Technology
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.36 times more return on investment than DXC Technology. However, Vienna Insurance Group is 2.75 times less risky than DXC Technology. It trades about 0.09 of its potential returns per unit of risk. DXC Technology Co is currently generating about -0.01 per unit of risk. If you would invest 2,314 in Vienna Insurance Group on November 28, 2024 and sell it today you would earn a total of 1,126 from holding Vienna Insurance Group or generate 48.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Vienna Insurance Group vs. DXC Technology Co
Performance |
| Timeline |
| Vienna Insurance |
| DXC Technology |
Vienna Insurance and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and DXC Technology
The main advantage of trading using opposite Vienna Insurance and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| Vienna Insurance vs. Roebuck Food Group | Vienna Insurance vs. CVS Health Corp | Vienna Insurance vs. Austevoll Seafood ASA | Vienna Insurance vs. HCA Healthcare |
| DXC Technology vs. Sunny Optical Technology | DXC Technology vs. Albion Technology General | DXC Technology vs. Resolute Mining Limited | DXC Technology vs. Edita Food Industries |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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