Correlation Between Austrian Traded and CA Immobilien
Can any of the company-specific risk be diversified away by investing in both Austrian Traded and CA Immobilien 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 Austrian Traded and CA Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austrian Traded Index and CA Immobilien Anlagen, you can compare the effects of market volatilities on Austrian Traded and CA Immobilien 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 Austrian Traded with a short position of CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and CA Immobilien.
Diversification Opportunities for Austrian Traded and CA Immobilien
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Austrian and CAI is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen and Austrian Traded 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 Austrian Traded Index are associated (or correlated) with CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of Austrian Traded i.e., Austrian Traded and CA Immobilien go up and down completely randomly.
Pair Corralation between Austrian Traded and CA Immobilien
Assuming the 90 days trading horizon Austrian Traded Index is expected to generate 0.54 times more return on investment than CA Immobilien. However, Austrian Traded Index is 1.85 times less risky than CA Immobilien. It trades about 0.03 of its potential returns per unit of risk. CA Immobilien Anlagen is currently generating about -0.02 per unit of risk. If you would invest 316,636 in Austrian Traded Index on August 30, 2024 and sell it today you would earn a total of 33,999 from holding Austrian Traded Index or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austrian Traded Index vs. CA Immobilien Anlagen
Performance |
| Timeline |
Austrian Traded and CA Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
CA Immobilien Anlagen
Pair trading matchups for CA Immobilien
Pair Trading with Austrian Traded and CA Immobilien
The main advantage of trading using opposite Austrian Traded and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded position performs unexpectedly, CA Immobilien 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.| Austrian Traded vs. UNIQA Insurance Group | Austrian Traded vs. BKS Bank AG | Austrian Traded vs. AMAG Austria Metall | Austrian Traded vs. SBM Offshore NV |
| CA Immobilien vs. S IMMO AG | CA Immobilien vs. RATH Aktiengesellschaft | CA Immobilien vs. AT S Austria | CA Immobilien vs. BAWAG Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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