Correlation Between Vienna Insurance and GEVORKYAN

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

Diversification Opportunities for Vienna Insurance and GEVORKYAN

-0.54

Correlation Coefficient

Vienna Insurance  GEVORKYAN

Excellent diversification

The 3 months correlation between Vienna and GEVORKYAN is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and GEVORKYAN as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEVORKYAN 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 GEVORKYAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEVORKYAN as has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and GEVORKYAN go up and down completely randomly.

Pair Corralation between Vienna Insurance and GEVORKYAN

Assuming the 90 days trading horizon Vienna Insurance Group is expected to under-perform the GEVORKYAN. But the stock apears to be less risky and, when comparing its historical volatility, Vienna Insurance Group is 1.24 times less risky than GEVORKYAN. The stock trades about -0.01 of its potential returns per unit of risk. The GEVORKYAN as is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  25,400  in GEVORKYAN as on September 19, 2024 and sell it today you would earn a total of  2,200  from holding GEVORKYAN as or generate 8.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vienna Insurance Group  vs.  GEVORKYAN 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 relatively invariable technical and fundamental indicators, Vienna Insurance is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

GEVORKYAN as

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GEVORKYAN as are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GEVORKYAN may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Vienna Insurance and GEVORKYAN

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

The idea behind Vienna Insurance Group and GEVORKYAN 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.