Correlation Between DAX Index and VIENNA INSURANCE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both DAX Index 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 DAX Index and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAX Index and VIENNA INSURANCE GR, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and VIENNA INSURANCE.

Diversification Opportunities for DAX Index and VIENNA INSURANCE

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between DAX and VIENNA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and VIENNA INSURANCE go up and down completely randomly.
    Optimize

Pair Corralation between DAX Index and VIENNA INSURANCE

Assuming the 90 days trading horizon DAX Index is expected to generate 1.19 times less return on investment than VIENNA INSURANCE. But when comparing it to its historical volatility, DAX Index is 1.12 times less risky than VIENNA INSURANCE. It trades about 0.09 of its potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,019  in VIENNA INSURANCE GR on September 24, 2024 and sell it today you would earn a total of  996.00  from holding VIENNA INSURANCE GR or generate 49.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

DAX Index  vs.  VIENNA INSURANCE GR

 Performance 
       Timeline  

DAX Index and VIENNA INSURANCE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DAX Index and VIENNA INSURANCE

The main advantage of trading using opposite DAX Index and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.
DAX Index vs. Seven West Media
DAX Index vs. TERADATA
DAX Index vs. DICKER DATA LTD
DAX Index vs. Datang International Power
The idea behind DAX Index and VIENNA INSURANCE GR 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.
VIENNA INSURANCE vs. CVW CLEANTECH INC
VIENNA INSURANCE vs. SCANDMEDICAL SOLDK 040
VIENNA INSURANCE vs. Cleanaway Waste Management
VIENNA INSURANCE vs. AVITA Medical
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY