Correlation Between Vienna Insurance and CARGOJET INC

Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and CARGOJET INC 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 CARGOJET INC 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 CARGOJET INC VAR, you can compare the effects of market volatilities on Vienna Insurance and CARGOJET INC 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 CARGOJET INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and CARGOJET INC.

Diversification Opportunities for Vienna Insurance and CARGOJET INC

-0.81

Correlation Coefficient

Vienna Insurance  CARGOJET INC

Pay attention - limited upside

The 3 months correlation between Vienna and CARGOJET is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and CARGOJET INC VAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARGOJET INC VAR 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 CARGOJET INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARGOJET INC VAR has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and CARGOJET INC go up and down completely randomly.

Pair Corralation between Vienna Insurance and CARGOJET INC

Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.51 times more return on investment than CARGOJET INC. However, Vienna Insurance Group is 1.94 times less risky than CARGOJET INC. It trades about 0.31 of its potential returns per unit of risk. CARGOJET INC VAR is currently generating about -0.11 per unit of risk. If you would invest  3,030  in Vienna Insurance Group on December 23, 2024 and sell it today you would earn a total of  860.00  from holding Vienna Insurance Group or generate 28.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Vienna Insurance Group  vs.  CARGOJET INC VAR

Vienna Insurance

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vienna Insurance Group are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Vienna Insurance reported solid returns over the last few months and may actually be approaching a breakup point.

CARGOJET INC VAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days CARGOJET INC VAR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Vienna Insurance and CARGOJET INC

The main advantage of trading using opposite Vienna Insurance and CARGOJET INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, CARGOJET INC 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 CARGOJET INC will offset losses from the drop in CARGOJET INC's long position.

The idea behind Vienna Insurance Group and CARGOJET INC VAR 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.