Correlation Between Vienna Insurance and Bezvavlasy

Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Bezvavlasy 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 Bezvavlasy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vienna Insurance Group and Bezvavlasy as, you can compare the effects of market volatilities on Vienna Insurance and Bezvavlasy 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 Bezvavlasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Bezvavlasy.

Diversification Opportunities for Vienna Insurance and Bezvavlasy

0.14

Correlation Coefficient

Vienna Insurance  Bezvavlasy

Average diversification

The 3 months correlation between Vienna and Bezvavlasy is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Bezvavlasy as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezvavlasy as 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 Group are associated (or correlated) with Bezvavlasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezvavlasy as has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Bezvavlasy go up and down completely randomly.

Pair Corralation between Vienna Insurance and Bezvavlasy

Assuming the 90 days trading horizon Vienna Insurance Group is expected to under-perform the Bezvavlasy. In addition to that, Vienna Insurance is 1.59 times more volatile than Bezvavlasy as. It trades about -0.14 of its total potential returns per unit of risk. Bezvavlasy as is currently generating about -0.04 per unit of volatility. If you would invest  72,000  in Bezvavlasy as on August 31, 2024 and sell it today you would lose (1,000.00) from holding Bezvavlasy as or give up 1.39% of portfolio value over 90 days.

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

Vienna Insurance Group  vs.  Bezvavlasy as

Vienna Insurance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vienna Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Bezvavlasy as

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bezvavlasy as has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Bezvavlasy is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Vienna Insurance and Bezvavlasy

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

The idea behind Vienna Insurance Group and Bezvavlasy as 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 CEOs Directory module to screen CEOs from public companies around the world.