Correlation Between AT S and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both AT S 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 AT S and Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on AT S 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 AT S with a short position of Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Wiener Privatbank.
Diversification Opportunities for AT S and Wiener Privatbank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATS and Wiener is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 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 AT S i.e., AT S and Wiener Privatbank go up and down completely randomly.
Pair Corralation between AT S and Wiener Privatbank
Assuming the 90 days trading horizon AT S Austria is expected to under-perform the Wiener Privatbank. In addition to that, AT S is 9.91 times more volatile than Wiener Privatbank SE. It trades about -0.43 of its total potential returns per unit of risk. Wiener Privatbank SE is currently generating about -0.21 per unit of volatility. If you would invest 765.00 in Wiener Privatbank SE on September 12, 2024 and sell it today you would lose (10.00) from holding Wiener Privatbank SE or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AT S Austria vs. Wiener Privatbank SE
Performance |
| Timeline |
| AT S Austria |
| Wiener Privatbank |
AT S and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AT S and Wiener Privatbank
The main advantage of trading using opposite AT S and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AT S 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.| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
| Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. BAWAG Group AG | Wiener Privatbank vs. Addiko Bank 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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