Correlation Between Wienerberger and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Wienerberger 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 Wienerberger and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and Vienna Insurance Group, you can compare the effects of market volatilities on Wienerberger 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 Wienerberger with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and Vienna Insurance.
Diversification Opportunities for Wienerberger and Vienna Insurance
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wienerberger and Vienna is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Wienerberger 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 Wienerberger AG 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 Wienerberger i.e., Wienerberger and Vienna Insurance go up and down completely randomly.
Pair Corralation between Wienerberger and Vienna Insurance
Assuming the 90 days trading horizon Wienerberger AG is expected to generate 1.84 times more return on investment than Vienna Insurance. However, Wienerberger is 1.84 times more volatile than Vienna Insurance Group. It trades about -0.09 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about -0.18 per unit of risk. If you would invest 2,778 in Wienerberger AG on August 26, 2024 and sell it today you would lose (112.00) from holding Wienerberger AG or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wienerberger AG vs. Vienna Insurance Group
Performance |
| Timeline |
| Wienerberger AG |
| Vienna Insurance |
Wienerberger and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and Vienna Insurance
The main advantage of trading using opposite Wienerberger and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger 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.| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz AG |
| Vienna Insurance vs. Erste Group Bank | Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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