Correlation Between Vienna Insurance and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Wiener Privatbank 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 Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on Vienna Insurance and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Wiener Privatbank.
Diversification Opportunities for Vienna Insurance and Wiener Privatbank
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vienna and Wiener is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Wiener Privatbank go up and down completely randomly.
Pair Corralation between Vienna Insurance and Wiener Privatbank
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.78 times more return on investment than Wiener Privatbank. However, Vienna Insurance Group is 1.28 times less risky than Wiener Privatbank. It trades about 0.04 of its potential returns per unit of risk. Wiener Privatbank SE is currently generating about 0.03 per unit of risk. If you would invest 2,465 in Vienna Insurance Group on August 24, 2024 and sell it today you would earn a total of 445.00 from holding Vienna Insurance Group or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Wiener Privatbank SE
Performance |
| Timeline |
| Vienna Insurance |
| Wiener Privatbank |
Vienna Insurance and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Wiener Privatbank
The main advantage of trading using opposite Vienna Insurance and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank's long position.| Vienna Insurance vs. Erste Group Bank | Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG |
| Wiener Privatbank vs. Universal Music Group | Wiener Privatbank vs. UNIQA Insurance Group | Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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