Correlation Between Vienna Insurance and IBU-tec Advanced

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

Diversification Opportunities for Vienna Insurance and IBU-tec Advanced

0.56

Correlation Coefficient

Vienna Insurance  IBU-tec Advanced

Very weak diversification

The 3 months correlation between Vienna and IBU-tec is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and IBU tec advanced materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBU tec advanced 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 IBU-tec Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBU tec advanced has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and IBU-tec Advanced go up and down completely randomly.

Pair Corralation between Vienna Insurance and IBU-tec Advanced

Assuming the 90 days trading horizon Vienna Insurance is expected to generate 4.09 times less return on investment than IBU-tec Advanced. But when comparing it to its historical volatility, Vienna Insurance Group is 3.04 times less risky than IBU-tec Advanced. It trades about 0.12 of its potential returns per unit of risk. IBU tec advanced materials is currently generating about 0.17 of returns per unit of risk over similar time horizon. 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

Vienna Insurance Group  vs.  IBU tec advanced materials

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.

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 fragile basic indicators, IBU-tec Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vienna Insurance and IBU-tec Advanced

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

The idea behind Vienna Insurance Group and IBU tec advanced materials 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.