Correlation Between VIENNA INSURANCE and MTY Food

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

Diversification Opportunities for VIENNA INSURANCE and MTY Food

-0.64

Correlation Coefficient

VIENNA INSURANCE  MTY Food

Excellent diversification

The 3 months correlation between VIENNA and MTY is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and MTY Food go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and MTY Food

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.47 times more return on investment than MTY Food. However, VIENNA INSURANCE GR is 2.13 times less risky than MTY Food. It trades about 0.4 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.09 per unit of risk. If you would invest  3,015  in VIENNA INSURANCE GR on December 20, 2024 and sell it today you would earn a total of  950.00  from holding VIENNA INSURANCE GR or generate 31.51% return on investment over 90 days.

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

VIENNA INSURANCE GR  vs.  MTY Food Group

VIENNA INSURANCE

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, VIENNA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

MTY Food Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days MTY Food Group 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 MTY Food

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

The idea behind VIENNA INSURANCE GR and MTY Food Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.