Correlation Between VIENNA INSURANCE and Amdocs

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

Diversification Opportunities for VIENNA INSURANCE and Amdocs

-0.53

Correlation Coefficient

VIENNA INSURANCE  Amdocs

Excellent diversification

The 3 months correlation between VIENNA and Amdocs is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Amdocs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs Limited 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 Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs Limited has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Amdocs go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and Amdocs

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.92 times more return on investment than Amdocs. However, VIENNA INSURANCE GR is 1.09 times less risky than Amdocs. It trades about 0.16 of its potential returns per unit of risk. Amdocs Limited is currently generating about -0.08 per unit of risk. If you would invest  4,355  in VIENNA INSURANCE GR on May 20, 2025 and sell it today you would earn a total of  570.00  from holding VIENNA INSURANCE GR or generate 13.09% return on investment over 90 days.

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

VIENNA INSURANCE GR  vs.  Amdocs Limited

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 12 (%) 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 September 2025.

Amdocs Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with VIENNA INSURANCE and Amdocs

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

The idea behind VIENNA INSURANCE GR and Amdocs Limited 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.