Correlation Between Austrian Traded and Oberbank
Can any of the company-specific risk be diversified away by investing in both Austrian Traded and Oberbank 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 Oberbank 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 Oberbank AG, you can compare the effects of market volatilities on Austrian Traded and Oberbank 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 Oberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and Oberbank.
Diversification Opportunities for Austrian Traded and Oberbank
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austrian and Oberbank is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and Oberbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberbank 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 Oberbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberbank AG has no effect on the direction of Austrian Traded i.e., Austrian Traded and Oberbank go up and down completely randomly.
Pair Corralation between Austrian Traded and Oberbank
Assuming the 90 days trading horizon Austrian Traded Index is expected to under-perform the Oberbank. In addition to that, Austrian Traded is 10.28 times more volatile than Oberbank AG. It trades about -0.05 of its total potential returns per unit of risk. Oberbank AG is currently generating about 0.15 per unit of volatility. If you would invest 6,940 in Oberbank AG on August 23, 2024 and sell it today you would earn a total of 120.00 from holding Oberbank AG or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Austrian Traded Index vs. Oberbank AG
Performance |
| Timeline |
Austrian Traded and Oberbank Volatility Contrast
Predicted Return Density |
| Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
Oberbank AG
Pair trading matchups for Oberbank
Pair Trading with Austrian Traded and Oberbank
The main advantage of trading using opposite Austrian Traded and Oberbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded position performs unexpectedly, Oberbank 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 Oberbank will offset losses from the drop in Oberbank's long position.| Austrian Traded vs. UNIQA Insurance Group | Austrian Traded vs. Universal Music Group | Austrian Traded vs. Raiffeisen Bank International | Austrian Traded vs. AMAG Austria Metall |
| Oberbank vs. Vienna Insurance Group | Oberbank vs. SBM Offshore NV | Oberbank vs. UNIQA Insurance Group | Oberbank vs. BKS 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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