Correlation Between Appian Corp and Vienna Insurance

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Can any of the company-specific risk be diversified away by investing in both Appian Corp and Vienna Insurance 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 Appian Corp and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appian Corp and Vienna Insurance Group, you can compare the effects of market volatilities on Appian Corp and Vienna Insurance 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 Appian Corp with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appian Corp and Vienna Insurance.

Diversification Opportunities for Appian Corp and Vienna Insurance

0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Appian and Vienna is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Appian Corp and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Appian Corp 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 Appian Corp are associated (or correlated) with Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Appian Corp i.e., Appian Corp and Vienna Insurance go up and down completely randomly.

Pair Corralation between Appian Corp and Vienna Insurance

Given the investment horizon of 90 days Appian Corp is expected to generate 1.72 times more return on investment than Vienna Insurance. However, Appian Corp is 1.72 times more volatile than Vienna Insurance Group. It trades about 0.13 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.12 per unit of risk. If you would invest  3,103  in Appian Corp on September 10, 2025 and sell it today you would earn a total of  1,201  from holding Appian Corp or generate 38.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Appian Corp  vs.  Vienna Insurance Group

 Performance 
       Timeline  
Appian Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Appian Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Appian Corp displayed solid returns over the last few months and may actually be approaching a breakup point.
Vienna Insurance 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vienna Insurance Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Vienna Insurance showed solid returns over the last few months and may actually be approaching a breakup point.

Appian Corp and Vienna Insurance Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Appian Corp and Vienna Insurance

The main advantage of trading using opposite Appian Corp and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appian Corp position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.
The idea behind Appian Corp and Vienna Insurance Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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