Correlation Between Austrian Traded and Warimpex Finanz
Can any of the company-specific risk be diversified away by investing in both Austrian Traded and Warimpex Finanz 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 Warimpex Finanz 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 Warimpex Finanz und, you can compare the effects of market volatilities on Austrian Traded and Warimpex Finanz 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 Warimpex Finanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and Warimpex Finanz.
Diversification Opportunities for Austrian Traded and Warimpex Finanz
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austrian and Warimpex is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and Warimpex Finanz und in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warimpex Finanz und 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 Warimpex Finanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warimpex Finanz und has no effect on the direction of Austrian Traded i.e., Austrian Traded and Warimpex Finanz go up and down completely randomly.
Pair Corralation between Austrian Traded and Warimpex Finanz
Assuming the 90 days trading horizon Austrian Traded Index is expected to generate 0.25 times more return on investment than Warimpex Finanz. However, Austrian Traded Index is 3.98 times less risky than Warimpex Finanz. It trades about 0.03 of its potential returns per unit of risk. Warimpex Finanz und is currently generating about 0.0 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austrian Traded Index vs. Warimpex Finanz und
Performance |
| Timeline |
Austrian Traded and Warimpex Finanz Volatility Contrast
Predicted Return Density |
| Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
Warimpex Finanz und
Pair trading matchups for Warimpex Finanz
Pair Trading with Austrian Traded and Warimpex Finanz
The main advantage of trading using opposite Austrian Traded and Warimpex Finanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded position performs unexpectedly, Warimpex Finanz 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 Warimpex Finanz will offset losses from the drop in Warimpex Finanz'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 |
| Warimpex Finanz vs. IMMOFINANZ AG | Warimpex Finanz vs. Polytec Holding AG | Warimpex Finanz vs. S IMMO AG | Warimpex Finanz vs. Zumtobel 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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