Correlation Between VIENNA INSURANCE and Teva Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Teva Pharmaceutical 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 Teva Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIENNA INSURANCE GR and Teva Pharmaceutical Industries, you can compare the effects of market volatilities on VIENNA INSURANCE and Teva Pharmaceutical 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 Teva Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Teva Pharmaceutical.
Diversification Opportunities for VIENNA INSURANCE and Teva Pharmaceutical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VIENNA and Teva is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Teva Pharmaceutical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teva Pharmaceutical 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 GR are associated (or correlated) with Teva Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teva Pharmaceutical has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Teva Pharmaceutical go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Teva Pharmaceutical
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.24 times more return on investment than Teva Pharmaceutical. However, VIENNA INSURANCE GR is 4.2 times less risky than Teva Pharmaceutical. It trades about 0.38 of its potential returns per unit of risk. Teva Pharmaceutical Industries is currently generating about -0.05 per unit of risk. If you would invest 3,025 in VIENNA INSURANCE GR on October 30, 2024 and sell it today you would earn a total of 100.00 from holding VIENNA INSURANCE GR or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Teva Pharmaceutical Industries
Performance |
| Timeline |
| VIENNA INSURANCE |
| Teva Pharmaceutical |
VIENNA INSURANCE and Teva Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Teva Pharmaceutical
The main advantage of trading using opposite VIENNA INSURANCE and Teva Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Teva Pharmaceutical 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 Teva Pharmaceutical will offset losses from the drop in Teva Pharmaceutical's long position.| VIENNA INSURANCE vs. Apple Inc | VIENNA INSURANCE vs. Apple Inc | VIENNA INSURANCE vs. Apple Inc | VIENNA INSURANCE vs. Apple Inc |
| Teva Pharmaceutical vs. Inspire Medical Systems | Teva Pharmaceutical vs. Japan Medical Dynamic | Teva Pharmaceutical vs. LOANDEPOT INC A | Teva Pharmaceutical vs. PEPTONIC 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |