Correlation Between Erste Group and Alternative Liquidity
Can any of the company-specific risk be diversified away by investing in both Erste Group and Alternative Liquidity 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 Alternative Liquidity 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 Alternative Liquidity, you can compare the effects of market volatilities on Erste Group and Alternative Liquidity 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 Alternative Liquidity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and Alternative Liquidity.
Diversification Opportunities for Erste Group and Alternative Liquidity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Erste and Alternative is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and Alternative Liquidity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Liquidity 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 Alternative Liquidity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Liquidity has no effect on the direction of Erste Group i.e., Erste Group and Alternative Liquidity go up and down completely randomly.
Pair Corralation between Erste Group and Alternative Liquidity
If you would invest 5,917 in Erste Group Bank on October 20, 2024 and sell it today you would earn a total of 116.00 from holding Erste Group Bank or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Erste Group Bank vs. Alternative Liquidity
Performance |
| Timeline |
| Erste Group Bank |
| Alternative Liquidity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Erste Group and Alternative Liquidity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and Alternative Liquidity
The main advantage of trading using opposite Erste Group and Alternative Liquidity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, Alternative Liquidity 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 Alternative Liquidity will offset losses from the drop in Alternative Liquidity's long position.| Erste Group vs. Spotify Technology SA | Erste Group vs. Hochschild Mining plc | Erste Group vs. Air Products Chemicals | Erste Group vs. Alfa Financial Software |
| Alternative Liquidity vs. Beowulf Mining | Alternative Liquidity vs. AfriTin Mining | Alternative Liquidity vs. Griffin Mining | Alternative Liquidity vs. Pan American Silver |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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