Correlation Between Vienna Insurance and Universal Insurance
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Universal 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 Vienna Insurance and Universal Insurance 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 Universal Insurance Holdings, you can compare the effects of market volatilities on Vienna Insurance and Universal 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 Vienna Insurance with a short position of Universal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Universal Insurance.
Diversification Opportunities for Vienna Insurance and Universal Insurance
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vienna and Universal is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Universal Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Insurance 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 Universal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Insurance has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Universal Insurance go up and down completely randomly.
Pair Corralation between Vienna Insurance and Universal Insurance
Assuming the 90 days horizon Vienna Insurance is expected to generate 2.02 times less return on investment than Universal Insurance. In addition to that, Vienna Insurance is 1.16 times more volatile than Universal Insurance Holdings. It trades about 0.08 of its total potential returns per unit of risk. Universal Insurance Holdings is currently generating about 0.18 per unit of volatility. If you would invest 2,487 in Universal Insurance Holdings on September 6, 2025 and sell it today you would earn a total of 725.00 from holding Universal Insurance Holdings or generate 29.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Vienna Insurance Group vs. Universal Insurance Holdings
Performance |
| Timeline |
| Vienna Insurance |
| Universal Insurance |
Vienna Insurance and Universal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Universal Insurance
The main advantage of trading using opposite Vienna Insurance and Universal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Universal 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 Universal Insurance will offset losses from the drop in Universal Insurance's long position.| Vienna Insurance vs. Berkshire Hathaway | Vienna Insurance vs. Allianz SE | Vienna Insurance vs. Allianz SE ADR | Vienna Insurance vs. Axa SA ADR |
| Universal Insurance vs. Skillful Craftsman Education | Universal Insurance vs. Juma Technology Corp | Universal Insurance vs. 51Talk Online Education | Universal Insurance vs. Quality Online Education |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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