Correlation Between VIENNA INSURANCE and PLAYTIKA HOLDING

Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on VIENNA INSURANCE and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and PLAYTIKA HOLDING.

Diversification Opportunities for VIENNA INSURANCE and PLAYTIKA HOLDING

-0.82

Correlation Coefficient

VIENNA INSURANCE  PLAYTIKA HOLDING

Pay attention - limited upside

The 3 months correlation between VIENNA and PLAYTIKA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and PLAYTIKA HOLDING

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.42 times more return on investment than PLAYTIKA HOLDING. However, VIENNA INSURANCE GR is 2.38 times less risky than PLAYTIKA HOLDING. It trades about 0.39 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.23 per unit of risk. If you would invest  3,015  in VIENNA INSURANCE GR on December 22, 2024 and sell it today you would earn a total of  940.00  from holding VIENNA INSURANCE GR or generate 31.18% return on investment over 90 days.

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

VIENNA INSURANCE GR  vs.  PLAYTIKA HOLDING DL 01

VIENNA INSURANCE

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, VIENNA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

PLAYTIKA HOLDING

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady 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 PLAYTIKA HOLDING

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

The idea behind VIENNA INSURANCE GR and PLAYTIKA HOLDING DL 01 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.