Correlation Between BAWAG Group and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both BAWAG Group 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 BAWAG Group and Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on BAWAG Group 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 BAWAG Group with a short position of Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAWAG Group and Wiener Privatbank.
Diversification Opportunities for BAWAG Group and Wiener Privatbank
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BAWAG and Wiener is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BAWAG Group AG and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 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 BAWAG Group i.e., BAWAG Group and Wiener Privatbank go up and down completely randomly.
Pair Corralation between BAWAG Group and Wiener Privatbank
If you would invest 7,195 in BAWAG Group AG on August 29, 2024 and sell it today you would earn a total of 195.00 from holding BAWAG Group AG or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BAWAG Group AG vs. Wiener Privatbank SE
Performance |
| Timeline |
| BAWAG Group AG |
| Wiener Privatbank |
BAWAG Group and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAWAG Group and Wiener Privatbank
The main advantage of trading using opposite BAWAG Group and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAWAG Group 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.| BAWAG Group vs. Erste Group Bank | BAWAG Group vs. Raiffeisen Bank International | BAWAG Group vs. UNIQA Insurance Group | BAWAG Group vs. OMV Aktiengesellschaft |
| Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. BAWAG Group AG | Wiener Privatbank vs. Addiko 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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