Correlation Between VIENNA INSURANCE and EVN AG

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

Diversification Opportunities for VIENNA INSURANCE and EVN AG

0.0

Correlation Coefficient

VIENNA INSURANCE  EVN AG

Pay attention - limited upside

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

Pair Corralation between VIENNA INSURANCE and EVN AG

If you would invest  2,245  in VIENNA INSURANCE GR on October 22, 2024 and sell it today you would earn a total of  835.00  from holding VIENNA INSURANCE GR or generate 37.19% 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.  EVN AG

VIENNA INSURANCE

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 2 (%) 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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

EVN AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EVN AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EVN AG 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 EVN AG

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

The idea behind VIENNA INSURANCE GR and EVN AG 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.