Correlation Between Austrian Traded and Cleen Energy
Can any of the company-specific risk be diversified away by investing in both Austrian Traded and Cleen Energy 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 Cleen Energy 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 Cleen Energy AG, you can compare the effects of market volatilities on Austrian Traded and Cleen Energy 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 Cleen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and Cleen Energy.
Diversification Opportunities for Austrian Traded and Cleen Energy
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austrian and Cleen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and Cleen Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleen Energy AG 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 Cleen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleen Energy AG has no effect on the direction of Austrian Traded i.e., Austrian Traded and Cleen Energy go up and down completely randomly.
Pair Corralation between Austrian Traded and Cleen Energy
Assuming the 90 days trading horizon Austrian Traded Index is expected to generate 0.08 times more return on investment than Cleen Energy. However, Austrian Traded Index is 12.11 times less risky than Cleen Energy. It trades about 0.04 of its potential returns per unit of risk. Cleen Energy AG is currently generating about -0.02 per unit of risk. If you would invest 329,078 in Austrian Traded Index on August 26, 2024 and sell it today you would earn a total of 24,188 from holding Austrian Traded Index or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austrian Traded Index vs. Cleen Energy AG
Performance |
| Timeline |
Austrian Traded and Cleen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
Cleen Energy AG
Pair trading matchups for Cleen Energy
Pair Trading with Austrian Traded and Cleen Energy
The main advantage of trading using opposite Austrian Traded and Cleen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded position performs unexpectedly, Cleen Energy 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 Cleen Energy will offset losses from the drop in Cleen Energy's long position.| Austrian Traded vs. Erste Group Bank | Austrian Traded vs. Vienna Insurance Group | Austrian Traded vs. Universal Music Group | Austrian Traded vs. Addiko Bank AG |
| Cleen Energy vs. RATH Aktiengesellschaft | Cleen Energy vs. Semperit Aktiengesellschaft Holding | Cleen Energy vs. Telekom Austria AG | Cleen Energy vs. Oesterr Post 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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