Correlation Between AT S and BKS Bank
Can any of the company-specific risk be diversified away by investing in both AT S and BKS Bank 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 AT S and BKS Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AT S Austria and BKS Bank AG, you can compare the effects of market volatilities on AT S and BKS Bank 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 AT S with a short position of BKS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and BKS Bank.
Diversification Opportunities for AT S and BKS Bank
Very weak diversification
The 3 months correlation between ATS and BKS is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and BKS Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKS Bank AG and AT S 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 AT S Austria are associated (or correlated) with BKS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKS Bank AG has no effect on the direction of AT S i.e., AT S and BKS Bank go up and down completely randomly.
Pair Corralation between AT S and BKS Bank
Assuming the 90 days trading horizon AT S Austria is expected to under-perform the BKS Bank. In addition to that, AT S is 5.21 times more volatile than BKS Bank AG. It trades about -0.5 of its total potential returns per unit of risk. BKS Bank AG is currently generating about -0.12 per unit of volatility. If you would invest 1,490 in BKS Bank AG on August 30, 2024 and sell it today you would lose (20.00) from holding BKS Bank AG or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AT S Austria vs. BKS Bank AG
Performance |
| Timeline |
| AT S Austria |
| BKS Bank AG |
AT S and BKS Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AT S and BKS Bank
The main advantage of trading using opposite AT S and BKS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AT S position performs unexpectedly, BKS Bank 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 BKS Bank will offset losses from the drop in BKS Bank's long position.| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
| BKS Bank vs. RATH Aktiengesellschaft | BKS Bank vs. AT S Austria | BKS Bank vs. BAWAG Group AG | BKS Bank vs. Semperit Aktiengesellschaft Holding |
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.
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