Correlation Between Assicurazioni Generali and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali 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 Assicurazioni Generali and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and Vienna Insurance Group, you can compare the effects of market volatilities on Assicurazioni Generali 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 Assicurazioni Generali with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Vienna Insurance.
Diversification Opportunities for Assicurazioni Generali and Vienna Insurance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Assicurazioni and Vienna is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Assicurazioni Generali 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 Assicurazioni Generali SpA 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 Assicurazioni Generali i.e., Assicurazioni Generali and Vienna Insurance go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Vienna Insurance
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 1.34 times more return on investment than Vienna Insurance. However, Assicurazioni Generali is 1.34 times more volatile than Vienna Insurance Group. It trades about 0.32 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.25 per unit of risk. If you would invest 2,709 in Assicurazioni Generali SpA on October 26, 2024 and sell it today you would earn a total of 191.00 from holding Assicurazioni Generali SpA or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. Vienna Insurance Group
Performance |
| Timeline |
| Assicurazioni Generali |
| Vienna Insurance |
Assicurazioni Generali and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Vienna Insurance
The main advantage of trading using opposite Assicurazioni Generali and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali 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.| Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. American International Group | Assicurazioni Generali vs. Sun Life Financial | Assicurazioni Generali vs. The Hartford Financial |
| Vienna Insurance vs. Zurich Insurance Group | Vienna Insurance vs. American International Group | Vienna Insurance vs. Assicurazioni Generali SpA | Vienna Insurance vs. Sun Life Financial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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