Correlation Between VIENNA INSURANCE and American Woodmark

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

Diversification Opportunities for VIENNA INSURANCE and American Woodmark

VIENNAAmericanDiversified AwayVIENNAAmericanDiversified Away100%
-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between VIENNA and American is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and American Woodmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Woodmark 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 American Woodmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Woodmark has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and American Woodmark go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and American Woodmark

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.33 times more return on investment than American Woodmark. However, VIENNA INSURANCE GR is 2.99 times less risky than American Woodmark. It trades about 0.06 of its potential returns per unit of risk. American Woodmark is currently generating about -0.08 per unit of risk. If you would invest  3,055  in VIENNA INSURANCE GR on October 27, 2024 and sell it today you would earn a total of  80.00  from holding VIENNA INSURANCE GR or generate 2.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.36%
ValuesDaily Returns

VIENNA INSURANCE GR  vs.  American Woodmark

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15WSV2 AHQ
       Timeline  
VIENNA INSURANCE 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, VIENNA INSURANCE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan28.52929.53030.53131.5
American Woodmark 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days American Woodmark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan7580859095

VIENNA INSURANCE and American Woodmark Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.13-1.58-1.03-0.480.03750.571.121.672.222.77 0.20.40.60.8
JavaScript chart by amCharts 3.21.15WSV2 AHQ
       Returns  

Pair Trading with VIENNA INSURANCE and American Woodmark

The main advantage of trading using opposite VIENNA INSURANCE and American Woodmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, American Woodmark 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 American Woodmark will offset losses from the drop in American Woodmark's long position.
The idea behind VIENNA INSURANCE GR and American Woodmark 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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