Correlation Between Andritz AG and OMV Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Andritz AG and OMV Aktiengesellscha 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 Andritz AG and OMV Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andritz AG and OMV Aktiengesellschaft, you can compare the effects of market volatilities on Andritz AG and OMV Aktiengesellscha 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 Andritz AG with a short position of OMV Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andritz AG and OMV Aktiengesellscha.
Diversification Opportunities for Andritz AG and OMV Aktiengesellscha
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Andritz and OMV is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Andritz AG and OMV Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMV Aktiengesellschaft and Andritz AG 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 Andritz AG are associated (or correlated) with OMV Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMV Aktiengesellschaft has no effect on the direction of Andritz AG i.e., Andritz AG and OMV Aktiengesellscha go up and down completely randomly.
Pair Corralation between Andritz AG and OMV Aktiengesellscha
Assuming the 90 days trading horizon Andritz AG is expected to under-perform the OMV Aktiengesellscha. In addition to that, Andritz AG is 1.23 times more volatile than OMV Aktiengesellschaft. It trades about -0.03 of its total potential returns per unit of risk. OMV Aktiengesellschaft is currently generating about -0.01 per unit of volatility. If you would invest 4,074 in OMV Aktiengesellschaft on August 27, 2024 and sell it today you would lose (188.00) from holding OMV Aktiengesellschaft or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andritz AG vs. OMV Aktiengesellschaft
Performance |
| Timeline |
| Andritz AG |
| OMV Aktiengesellschaft |
Andritz AG and OMV Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andritz AG and OMV Aktiengesellscha
The main advantage of trading using opposite Andritz AG and OMV Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andritz AG position performs unexpectedly, OMV Aktiengesellscha 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 OMV Aktiengesellscha will offset losses from the drop in OMV Aktiengesellscha's long position.| Andritz AG vs. Voestalpine AG | Andritz AG vs. OMV Aktiengesellschaft | Andritz AG vs. UNIQA Insurance Group | Andritz AG vs. VERBUND AG |
| OMV Aktiengesellscha vs. Voestalpine AG | OMV Aktiengesellscha vs. Erste Group Bank | OMV Aktiengesellscha vs. Raiffeisen Bank International | OMV Aktiengesellscha vs. VERBUND 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |