Correlation Between VIENNA INSURANCE and ESSILORLUXOTTICA

Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and ESSILORLUXOTTICA 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 ESSILORLUXOTTICA 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 ESSILORLUXOTTICA 12ON, you can compare the effects of market volatilities on VIENNA INSURANCE and ESSILORLUXOTTICA 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 ESSILORLUXOTTICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and ESSILORLUXOTTICA.

Diversification Opportunities for VIENNA INSURANCE and ESSILORLUXOTTICA

0.0

Correlation Coefficient

VIENNA INSURANCE  ESSILORLUXOTTICA

Pay attention - limited upside

The 3 months correlation between VIENNA and ESSILORLUXOTTICA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and ESSILORLUXOTTICA 12ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESSILORLUXOTTICA 12ON 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 ESSILORLUXOTTICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESSILORLUXOTTICA 12ON has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and ESSILORLUXOTTICA go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and ESSILORLUXOTTICA

If you would invest  2,840  in VIENNA INSURANCE GR on October 9, 2024 and sell it today you would earn a total of  205.00  from holding VIENNA INSURANCE GR or generate 7.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VIENNA INSURANCE GR  vs.  ESSILORLUXOTTICA 12ON

VIENNA INSURANCE

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, VIENNA INSURANCE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ESSILORLUXOTTICA 12ON

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days ESSILORLUXOTTICA 12ON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, ESSILORLUXOTTICA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VIENNA INSURANCE and ESSILORLUXOTTICA

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

The idea behind VIENNA INSURANCE GR and ESSILORLUXOTTICA 12ON 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.