Correlation Between Addiko Bank and IMMOFINANZ
Can any of the company-specific risk be diversified away by investing in both Addiko Bank and IMMOFINANZ 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 Addiko Bank and IMMOFINANZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addiko Bank AG and IMMOFINANZ AG, you can compare the effects of market volatilities on Addiko Bank and IMMOFINANZ 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 Addiko Bank with a short position of IMMOFINANZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addiko Bank and IMMOFINANZ.
Diversification Opportunities for Addiko Bank and IMMOFINANZ
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Addiko and IMMOFINANZ is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Addiko Bank AG and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ AG and Addiko Bank 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 Addiko Bank AG are associated (or correlated) with IMMOFINANZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMMOFINANZ AG has no effect on the direction of Addiko Bank i.e., Addiko Bank and IMMOFINANZ go up and down completely randomly.
Pair Corralation between Addiko Bank and IMMOFINANZ
Assuming the 90 days trading horizon Addiko Bank AG is expected to generate 1.08 times more return on investment than IMMOFINANZ. However, Addiko Bank is 1.08 times more volatile than IMMOFINANZ AG. It trades about 0.09 of its potential returns per unit of risk. IMMOFINANZ AG is currently generating about 0.03 per unit of risk. If you would invest 944.00 in Addiko Bank AG on August 23, 2024 and sell it today you would earn a total of 1,036 from holding Addiko Bank AG or generate 109.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Addiko Bank AG vs. IMMOFINANZ AG
Performance |
| Timeline |
| Addiko Bank AG |
| IMMOFINANZ AG |
Addiko Bank and IMMOFINANZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addiko Bank and IMMOFINANZ
The main advantage of trading using opposite Addiko Bank and IMMOFINANZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addiko Bank position performs unexpectedly, IMMOFINANZ 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 IMMOFINANZ will offset losses from the drop in IMMOFINANZ's long position.| Addiko Bank vs. BKS Bank AG | Addiko Bank vs. Vienna Insurance Group | Addiko Bank vs. AMAG Austria Metall | Addiko Bank vs. Universal Music Group |
| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. S IMMO AG | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ vs. Raiffeisen Bank International |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |