Correlation Between VIENNA INSURANCE and Lloyds Banking

Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Lloyds Banking 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 Lloyds Banking 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 Lloyds Banking Group, you can compare the effects of market volatilities on VIENNA INSURANCE and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Lloyds Banking.

Diversification Opportunities for VIENNA INSURANCE and Lloyds Banking

0.52

Correlation Coefficient

VIENNA INSURANCE  Lloyds Banking

Very weak diversification

The 3 months correlation between VIENNA and Lloyds is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Lloyds Banking go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and Lloyds Banking

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.96 times more return on investment than Lloyds Banking. However, VIENNA INSURANCE GR is 1.04 times less risky than Lloyds Banking. It trades about 0.14 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.06 per unit of risk. If you would invest  3,934  in VIENNA INSURANCE GR on April 24, 2025 and sell it today you would earn a total of  431.00  from holding VIENNA INSURANCE GR or generate 10.96% return on investment over 90 days.

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

VIENNA INSURANCE GR  vs.  Lloyds Banking Group

VIENNA INSURANCE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, VIENNA INSURANCE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Lloyds Banking Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lloyds Banking Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Lloyds Banking is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VIENNA INSURANCE and Lloyds Banking

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

The idea behind VIENNA INSURANCE GR and Lloyds Banking 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.