Correlation Between VIENNA INSURANCE and CTS Eventim

Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and CTS Eventim 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 CTS Eventim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VIENNA INSURANCE GR and CTS Eventim AG, you can compare the effects of market volatilities on VIENNA INSURANCE and CTS Eventim 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 CTS Eventim. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and CTS Eventim.

Diversification Opportunities for VIENNA INSURANCE and CTS Eventim

0.61

Correlation Coefficient

VIENNA INSURANCE  CTS Eventim

Poor diversification

The 3 months correlation between VIENNA and CTS is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG 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 GR are associated (or correlated) with CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and CTS Eventim go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and CTS Eventim

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.89 times more return on investment than CTS Eventim. However, VIENNA INSURANCE GR is 1.13 times less risky than CTS Eventim. It trades about 0.14 of its potential returns per unit of risk. CTS Eventim AG is currently generating about 0.01 per unit of risk. If you would invest  3,949  in VIENNA INSURANCE GR on April 25, 2025 and sell it today you would earn a total of  466.00  from holding VIENNA INSURANCE GR or generate 11.8% return on investment over 90 days.

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

VIENNA INSURANCE GR  vs.  CTS Eventim AG

VIENNA INSURANCE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, VIENNA INSURANCE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CTS Eventim AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CTS Eventim AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CTS Eventim is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VIENNA INSURANCE and CTS Eventim

The main advantage of trading using opposite VIENNA INSURANCE and CTS Eventim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, CTS Eventim 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 CTS Eventim will offset losses from the drop in CTS Eventim's long position.

The idea behind VIENNA INSURANCE GR and CTS Eventim AG 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.