Correlation Between Erste Group and Coor Service
Can any of the company-specific risk be diversified away by investing in both Erste Group and Coor Service 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 Erste Group and Coor Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erste Group Bank and Coor Service Management, you can compare the effects of market volatilities on Erste Group and Coor Service 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 Erste Group with a short position of Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and Coor Service.
Diversification Opportunities for Erste Group and Coor Service
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Erste and Coor is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management and Erste Group 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 Erste Group Bank are associated (or correlated) with Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of Erste Group i.e., Erste Group and Coor Service go up and down completely randomly.
Pair Corralation between Erste Group and Coor Service
Assuming the 90 days trading horizon Erste Group Bank is expected to generate 0.85 times more return on investment than Coor Service. However, Erste Group Bank is 1.17 times less risky than Coor Service. It trades about 0.59 of its potential returns per unit of risk. Coor Service Management is currently generating about 0.05 per unit of risk. If you would invest 5,146 in Erste Group Bank on September 25, 2024 and sell it today you would earn a total of 738.00 from holding Erste Group Bank or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erste Group Bank vs. Coor Service Management
Performance |
| Timeline |
| Erste Group Bank |
| Coor Service Management |
Erste Group and Coor Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and Coor Service
The main advantage of trading using opposite Erste Group and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service's long position.| Erste Group vs. Uniper SE | Erste Group vs. Mulberry Group PLC | Erste Group vs. London Security Plc | Erste Group vs. Triad Group PLC |
| Coor Service vs. Kaufman Et Broad | Coor Service vs. Ion Beam Applications | Coor Service vs. Datagroup SE | Coor Service vs. Teradata Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| CEOs Directory Screen CEOs from public companies around the world |