Correlation Between BAWAG Group and RATH Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both BAWAG Group and RATH Aktiengesellscha 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 BAWAG Group and RATH Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAWAG Group AG and RATH Aktiengesellschaft, you can compare the effects of market volatilities on BAWAG Group and RATH Aktiengesellscha 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 BAWAG Group with a short position of RATH Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAWAG Group and RATH Aktiengesellscha.
Diversification Opportunities for BAWAG Group and RATH Aktiengesellscha
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BAWAG and RATH is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BAWAG Group AG and RATH Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATH Aktiengesellschaft and BAWAG Group 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 BAWAG Group AG are associated (or correlated) with RATH Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATH Aktiengesellschaft has no effect on the direction of BAWAG Group i.e., BAWAG Group and RATH Aktiengesellscha go up and down completely randomly.
Pair Corralation between BAWAG Group and RATH Aktiengesellscha
Assuming the 90 days horizon BAWAG Group AG is expected to generate 3.15 times more return on investment than RATH Aktiengesellscha. However, BAWAG Group is 3.15 times more volatile than RATH Aktiengesellschaft. It trades about 0.18 of its potential returns per unit of risk. RATH Aktiengesellschaft is currently generating about 0.0 per unit of risk. If you would invest 6,905 in BAWAG Group AG on August 24, 2024 and sell it today you would earn a total of 430.00 from holding BAWAG Group AG or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BAWAG Group AG vs. RATH Aktiengesellschaft
Performance |
| Timeline |
| BAWAG Group AG |
| RATH Aktiengesellschaft |
BAWAG Group and RATH Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAWAG Group and RATH Aktiengesellscha
The main advantage of trading using opposite BAWAG Group and RATH Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAWAG Group position performs unexpectedly, RATH Aktiengesellscha 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 RATH Aktiengesellscha will offset losses from the drop in RATH Aktiengesellscha's long position.| BAWAG Group vs. Erste Group Bank | BAWAG Group vs. Raiffeisen Bank International | BAWAG Group vs. UNIQA Insurance Group | BAWAG Group vs. OMV Aktiengesellschaft |
| RATH Aktiengesellscha vs. AT S Austria | RATH Aktiengesellscha vs. BAWAG Group AG | RATH Aktiengesellscha vs. Semperit Aktiengesellschaft Holding | RATH Aktiengesellscha vs. Telekom Austria 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |