Correlation Between Wiener Privatbank and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank 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 Wiener Privatbank and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiener Privatbank SE and Vienna Insurance Group, you can compare the effects of market volatilities on Wiener Privatbank 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 Wiener Privatbank with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and Vienna Insurance.
Diversification Opportunities for Wiener Privatbank and Vienna Insurance
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiener and Vienna is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Wiener Privatbank 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 Wiener Privatbank SE 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 Wiener Privatbank i.e., Wiener Privatbank and Vienna Insurance go up and down completely randomly.
Pair Corralation between Wiener Privatbank and Vienna Insurance
Assuming the 90 days trading horizon Wiener Privatbank is expected to generate 1.68 times less return on investment than Vienna Insurance. In addition to that, Wiener Privatbank is 1.33 times more volatile than Vienna Insurance Group. It trades about 0.03 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.06 per unit of volatility. If you would invest 2,170 in Vienna Insurance Group on August 30, 2024 and sell it today you would earn a total of 760.00 from holding Vienna Insurance Group or generate 35.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wiener Privatbank SE vs. Vienna Insurance Group
Performance |
| Timeline |
| Wiener Privatbank |
| Vienna Insurance |
Wiener Privatbank and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and Vienna Insurance
The main advantage of trading using opposite Wiener Privatbank and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank 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.| Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. BAWAG Group AG | Wiener Privatbank vs. Addiko Bank AG |
| Vienna Insurance vs. Oesterr Post AG | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG | Vienna Insurance vs. OMV Aktiengesellschaft |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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