Correlation Between VIENNA INSURANCE and NATIONAL HEALTHCARE

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

Diversification Opportunities for VIENNA INSURANCE and NATIONAL HEALTHCARE

-0.81

Correlation Coefficient

VIENNA INSURANCE  NATIONAL HEALTHCARE

Pay attention - limited upside

The 3 months correlation between VIENNA and NATIONAL is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and NATIONAL HEALTHCARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL HEALTHCARE 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 NATIONAL HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL HEALTHCARE has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and NATIONAL HEALTHCARE go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and NATIONAL HEALTHCARE

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.66 times more return on investment than NATIONAL HEALTHCARE. However, VIENNA INSURANCE GR is 1.51 times less risky than NATIONAL HEALTHCARE. It trades about 0.38 of its potential returns per unit of risk. NATIONAL HEALTHCARE is currently generating about -0.22 per unit of risk. If you would invest  3,025  in VIENNA INSURANCE GR on December 25, 2024 and sell it today you would earn a total of  920.00  from holding VIENNA INSURANCE GR or generate 30.41% 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.  NATIONAL HEALTHCARE

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 weak basic indicators, VIENNA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

NATIONAL HEALTHCARE

Risk-Adjusted Performance

Very Weak

Over the last 90 days NATIONAL HEALTHCARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with VIENNA INSURANCE and NATIONAL HEALTHCARE

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

The idea behind VIENNA INSURANCE GR and NATIONAL HEALTHCARE 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.