Correlation Between Erste Group and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Erste Group and Oxford Technology 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 Oxford Technology 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 Oxford Technology 2, you can compare the effects of market volatilities on Erste Group and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and Oxford Technology.
Diversification Opportunities for Erste Group and Oxford Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Erste and Oxford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Erste Group i.e., Erste Group and Oxford Technology go up and down completely randomly.
Pair Corralation between Erste Group and Oxford Technology
If you would invest 5,181 in Erste Group Bank on October 30, 2024 and sell it today you would earn a total of 996.00 from holding Erste Group Bank or generate 19.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erste Group Bank vs. Oxford Technology 2
Performance |
| Timeline |
| Erste Group Bank |
| Oxford Technology |
Erste Group and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and Oxford Technology
The main advantage of trading using opposite Erste Group and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.| Erste Group vs. JB Hunt Transport | Erste Group vs. Aptitude Software Group | Erste Group vs. Axway Software SA | Erste Group vs. Alfa Financial Software |
| Oxford Technology vs. Leroy Seafood Group | Oxford Technology vs. STMicroelectronics NV | Oxford Technology vs. Axfood AB | Oxford Technology vs. Molson Coors Beverage |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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