Correlation Between AT S and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both AT S and Raiffeisen 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 Raiffeisen 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 Raiffeisen Bank International, you can compare the effects of market volatilities on AT S and Raiffeisen 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 Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Raiffeisen Bank.
Diversification Opportunities for AT S and Raiffeisen Bank
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATS and Raiffeisen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte 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 Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of AT S i.e., AT S and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between AT S and Raiffeisen Bank
Assuming the 90 days trading horizon AT S Austria is expected to under-perform the Raiffeisen Bank. In addition to that, AT S is 1.47 times more volatile than Raiffeisen Bank International. It trades about -0.03 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.06 per unit of volatility. If you would invest 1,344 in Raiffeisen Bank International on January 22, 2025 and sell it today you would earn a total of 818.00 from holding Raiffeisen Bank International or generate 60.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AT S Austria vs. Raiffeisen Bank International
Performance |
| Timeline |
| AT S Austria |
| Raiffeisen Bank Inte |
AT S and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AT S and Raiffeisen Bank
The main advantage of trading using opposite AT S and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AT S position performs unexpectedly, Raiffeisen 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank's long position.| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
| Raiffeisen Bank vs. Universal Music Group | Raiffeisen Bank vs. Addiko Bank AG | Raiffeisen Bank vs. BKS Bank AG | Raiffeisen Bank vs. UNIQA Insurance Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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