Correlation Between Addiko Bank and KTM Industries
Can any of the company-specific risk be diversified away by investing in both Addiko Bank and KTM Industries 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 KTM Industries 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 KTM Industries AG, you can compare the effects of market volatilities on Addiko Bank and KTM Industries 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 KTM Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addiko Bank and KTM Industries.
Diversification Opportunities for Addiko Bank and KTM Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Addiko and KTM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Addiko Bank AG and KTM Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTM Industries 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 KTM Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTM Industries AG has no effect on the direction of Addiko Bank i.e., Addiko Bank and KTM Industries go up and down completely randomly.
Pair Corralation between Addiko Bank and KTM Industries
If you would invest 1,900 in Addiko Bank AG on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Addiko Bank AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Addiko Bank AG vs. KTM Industries AG
Performance |
| Timeline |
| Addiko Bank AG |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Addiko Bank and KTM Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addiko Bank and KTM Industries
The main advantage of trading using opposite Addiko Bank and KTM Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addiko Bank position performs unexpectedly, KTM Industries 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 KTM Industries will offset losses from the drop in KTM Industries' long position.| Addiko Bank vs. CNH Industrial NV | Addiko Bank vs. Vienna Insurance Group | Addiko Bank vs. Oberbank AG | Addiko Bank vs. BKS Bank AG |
| KTM Industries vs. UNIQA Insurance Group | KTM Industries vs. Erste Group Bank | KTM Industries vs. Wiener Privatbank SE | KTM Industries vs. Addiko Bank AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |