Correlation Between PureTech Health and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both PureTech Health 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 PureTech Health and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureTech Health plc and Vienna Insurance Group, you can compare the effects of market volatilities on PureTech Health 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 PureTech Health with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureTech Health and Vienna Insurance.
Diversification Opportunities for PureTech Health and Vienna Insurance
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PureTech and Vienna is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and PureTech Health 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 PureTech Health plc 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 PureTech Health i.e., PureTech Health and Vienna Insurance go up and down completely randomly.
Pair Corralation between PureTech Health and Vienna Insurance
Assuming the 90 days trading horizon PureTech Health is expected to generate 2.97 times less return on investment than Vienna Insurance. In addition to that, PureTech Health is 1.72 times more volatile than Vienna Insurance Group. It trades about 0.04 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.19 per unit of volatility. If you would invest 3,875 in Vienna Insurance Group on April 20, 2025 and sell it today you would earn a total of 578.00 from holding Vienna Insurance Group or generate 14.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PureTech Health plc vs. Vienna Insurance Group
Performance |
Timeline |
PureTech Health plc |
Vienna Insurance |
PureTech Health and Vienna Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PureTech Health and Vienna Insurance
The main advantage of trading using opposite PureTech Health and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureTech Health 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.PureTech Health vs. Flutter Entertainment PLC | PureTech Health vs. Camellia Plc | PureTech Health vs. Ferguson Plc | PureTech Health vs. Marwyn Value Investors |
Vienna Insurance vs. Dentsply Sirona | Vienna Insurance vs. Axway Software SA | Vienna Insurance vs. Costco Wholesale Corp | Vienna Insurance vs. Evolution Gaming Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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