Correlation Between AT S and Exor NV
Can any of the company-specific risk be diversified away by investing in both AT S and Exor NV 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 Exor NV 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 Exor NV, you can compare the effects of market volatilities on AT S and Exor NV 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 Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Exor NV.
Diversification Opportunities for AT S and Exor NV
Poor diversification
The 3 months correlation between ATS and Exor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV 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 Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of AT S i.e., AT S and Exor NV go up and down completely randomly.
Pair Corralation between AT S and Exor NV
Assuming the 90 days trading horizon AT S Austria is expected to under-perform the Exor NV. In addition to that, AT S is 1.8 times more volatile than Exor NV. It trades about -0.39 of its total potential returns per unit of risk. Exor NV is currently generating about -0.13 per unit of volatility. If you would invest 9,715 in Exor NV on September 4, 2024 and sell it today you would lose (430.00) from holding Exor NV or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AT S Austria vs. Exor NV
Performance |
| Timeline |
| AT S Austria |
| Exor NV |
AT S and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AT S and Exor NV
The main advantage of trading using opposite AT S and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AT S position performs unexpectedly, Exor NV 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 Exor NV will offset losses from the drop in Exor NV's long position.| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
| Exor NV vs. RATH Aktiengesellschaft | Exor NV vs. AT S Austria | Exor NV vs. BAWAG Group AG | Exor NV 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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