Correlation Between Addiko Bank and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both Addiko Bank and Wiener Privatbank 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 Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on Addiko Bank and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addiko Bank and Wiener Privatbank.
Diversification Opportunities for Addiko Bank and Wiener Privatbank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addiko and Wiener is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Addiko Bank AG and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of Addiko Bank i.e., Addiko Bank and Wiener Privatbank go up and down completely randomly.
Pair Corralation between Addiko Bank and Wiener Privatbank
Assuming the 90 days trading horizon Addiko Bank AG is expected to generate 1.61 times more return on investment than Wiener Privatbank. However, Addiko Bank is 1.61 times more volatile than Wiener Privatbank SE. It trades about 0.01 of its potential returns per unit of risk. Wiener Privatbank SE is currently generating about -0.35 per unit of risk. 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 | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addiko Bank AG vs. Wiener Privatbank SE
Performance |
| Timeline |
| Addiko Bank AG |
| Wiener Privatbank |
Addiko Bank and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addiko Bank and Wiener Privatbank
The main advantage of trading using opposite Addiko Bank and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addiko Bank position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank's 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 |
| Wiener Privatbank vs. Erste Group Bank | Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. Addiko Bank AG | Wiener Privatbank vs. Oberbank 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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