Correlation Between Austrian Traded and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both Austrian Traded 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 Austrian Traded and Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on Austrian Traded 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 Austrian Traded with a short position of Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and Wiener Privatbank.
Diversification Opportunities for Austrian Traded and Wiener Privatbank
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austrian and Wiener is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 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 Austrian Traded i.e., Austrian Traded and Wiener Privatbank go up and down completely randomly.
Pair Corralation between Austrian Traded and Wiener Privatbank
Assuming the 90 days trading horizon Austrian Traded is expected to generate 1.48 times less return on investment than Wiener Privatbank. But when comparing it to its historical volatility, Austrian Traded Index is 1.7 times less risky than Wiener Privatbank. It trades about 0.03 of its potential returns per unit of risk. Wiener Privatbank SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 665.00 in Wiener Privatbank SE on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Wiener Privatbank SE or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austrian Traded Index vs. Wiener Privatbank SE
Performance |
| Timeline |
Austrian Traded and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
Wiener Privatbank SE
Pair trading matchups for Wiener Privatbank
Pair Trading with Austrian Traded and Wiener Privatbank
The main advantage of trading using opposite Austrian Traded and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded 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.| Austrian Traded vs. Addiko Bank AG | Austrian Traded vs. Oberbank AG | Austrian Traded vs. AMAG Austria Metall | Austrian Traded vs. UNIQA Insurance Group |
| Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. UNIQA Insurance Group | Wiener Privatbank vs. BKS Bank AG | Wiener Privatbank vs. Vienna Insurance Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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