Correlation Between IBU-tec Advanced and Vienna Insurance

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

By analyzing existing cross correlation between IBU tec advanced materials and Vienna Insurance Group, you can compare the effects of market volatilities on IBU-tec Advanced 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 IBU-tec Advanced with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBU-tec Advanced and Vienna Insurance.

Diversification Opportunities for IBU-tec Advanced and Vienna Insurance

0.58

Correlation Coefficient

IBU-tec Advanced  Vienna Insurance

Very weak diversification

The 3 months correlation between IBU-tec and Vienna is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding IBU tec advanced materials and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and IBU-tec Advanced 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 IBU tec advanced materials 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 IBU-tec Advanced i.e., IBU-tec Advanced and Vienna Insurance go up and down completely randomly.

Pair Corralation between IBU-tec Advanced and Vienna Insurance

Assuming the 90 days trading horizon IBU tec advanced materials is expected to generate 3.04 times more return on investment than Vienna Insurance. However, IBU-tec Advanced is 3.04 times more volatile than Vienna Insurance Group. It trades about 0.17 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  556.00  in IBU tec advanced materials on April 24, 2025 and sell it today you would earn a total of  260.00  from holding IBU tec advanced materials or generate 46.76% return on investment over 90 days.

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

IBU tec advanced materials  vs.  Vienna Insurance Group

IBU tec advanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in IBU tec advanced materials are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, IBU-tec Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vienna Insurance

Risk-Adjusted Performance

OK

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. Despite nearly uncertain basic indicators, Vienna Insurance may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with IBU-tec Advanced and Vienna Insurance

The main advantage of trading using opposite IBU-tec Advanced and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBU-tec Advanced 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 IBU tec advanced materials 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.