Correlation Between BKS Bank and Addiko Bank
Can any of the company-specific risk be diversified away by investing in both BKS Bank and Addiko Bank 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 BKS Bank and Addiko Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKS Bank AG and Addiko Bank AG, you can compare the effects of market volatilities on BKS Bank and Addiko Bank 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 BKS Bank with a short position of Addiko Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and Addiko Bank.
Diversification Opportunities for BKS Bank and Addiko Bank
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKS and Addiko is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG and Addiko Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addiko Bank AG and BKS Bank 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 BKS Bank AG are associated (or correlated) with Addiko Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addiko Bank AG has no effect on the direction of BKS Bank i.e., BKS Bank and Addiko Bank go up and down completely randomly.
Pair Corralation between BKS Bank and Addiko Bank
Assuming the 90 days trading horizon BKS Bank AG is expected to generate 0.6 times more return on investment than Addiko Bank. However, BKS Bank AG is 1.67 times less risky than Addiko Bank. It trades about -0.06 of its potential returns per unit of risk. Addiko Bank AG is currently generating about -0.05 per unit of risk. If you would invest 1,490 in BKS Bank AG on August 26, 2024 and sell it today you would lose (10.00) from holding BKS Bank AG or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BKS Bank AG vs. Addiko Bank AG
Performance |
| Timeline |
| BKS Bank AG |
| Addiko Bank AG |
BKS Bank and Addiko Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKS Bank and Addiko Bank
The main advantage of trading using opposite BKS Bank and Addiko Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank position performs unexpectedly, Addiko Bank 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 Addiko Bank will offset losses from the drop in Addiko Bank's long position.| BKS Bank vs. AMAG Austria Metall | BKS Bank vs. UNIQA Insurance Group | BKS Bank vs. Raiffeisen Bank International | BKS Bank vs. SBM Offshore NV |
| Addiko Bank vs. Erste Group Bank | Addiko Bank vs. Universal Music Group | Addiko Bank vs. AMAG Austria Metall | Addiko Bank vs. Wiener Privatbank SE |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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