Correlation Between Austrian Traded and Stadlauer Malzfabrik
Can any of the company-specific risk be diversified away by investing in both Austrian Traded and Stadlauer Malzfabrik 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 Stadlauer Malzfabrik 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 Stadlauer Malzfabrik Aktiengesellschaft, you can compare the effects of market volatilities on Austrian Traded and Stadlauer Malzfabrik 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 Stadlauer Malzfabrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and Stadlauer Malzfabrik.
Diversification Opportunities for Austrian Traded and Stadlauer Malzfabrik
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austrian and Stadlauer is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and Stadlauer Malzfabrik Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadlauer Malzfabrik 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 Stadlauer Malzfabrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadlauer Malzfabrik has no effect on the direction of Austrian Traded i.e., Austrian Traded and Stadlauer Malzfabrik go up and down completely randomly.
Pair Corralation between Austrian Traded and Stadlauer Malzfabrik
Assuming the 90 days trading horizon Austrian Traded Index is expected to generate 0.56 times more return on investment than Stadlauer Malzfabrik. However, Austrian Traded Index is 1.79 times less risky than Stadlauer Malzfabrik. It trades about -0.06 of its potential returns per unit of risk. Stadlauer Malzfabrik Aktiengesellschaft is currently generating about -0.1 per unit of risk. If you would invest 358,316 in Austrian Traded Index on August 26, 2024 and sell it today you would lose (5,050) from holding Austrian Traded Index or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Austrian Traded Index vs. Stadlauer Malzfabrik Aktienges
Performance |
| Timeline |
Austrian Traded and Stadlauer Malzfabrik Volatility Contrast
Predicted Return Density |
| Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
Stadlauer Malzfabrik Aktiengesellschaft
Pair trading matchups for Stadlauer Malzfabrik
Pair Trading with Austrian Traded and Stadlauer Malzfabrik
The main advantage of trading using opposite Austrian Traded and Stadlauer Malzfabrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded position performs unexpectedly, Stadlauer Malzfabrik 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 Stadlauer Malzfabrik will offset losses from the drop in Stadlauer Malzfabrik'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 |
| Stadlauer Malzfabrik vs. Oesterr Post AG | Stadlauer Malzfabrik vs. Andritz AG | Stadlauer Malzfabrik vs. EVN AG | Stadlauer Malzfabrik vs. Wienerberger 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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