Correlation Between BKS Bank and Gurktaler Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both BKS Bank and Gurktaler 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 BKS Bank and Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellschaft, you can compare the effects of market volatilities on BKS Bank and Gurktaler 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 BKS Bank with a short position of Gurktaler Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and Gurktaler Aktiengesellscha.
Diversification Opportunities for BKS Bank and Gurktaler Aktiengesellscha
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BKS and Gurktaler is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG and Gurktaler Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurktaler Aktiengesellscha has no effect on the direction of BKS Bank i.e., BKS Bank and Gurktaler Aktiengesellscha go up and down completely randomly.
Pair Corralation between BKS Bank and Gurktaler Aktiengesellscha
Assuming the 90 days trading horizon BKS Bank AG is expected to generate 0.25 times more return on investment than Gurktaler Aktiengesellscha. However, BKS Bank AG is 4.01 times less risky than Gurktaler Aktiengesellscha. It trades about 0.02 of its potential returns per unit of risk. Gurktaler Aktiengesellschaft is currently generating about 0.0 per unit of risk. If you would invest 1,370 in BKS Bank AG on August 30, 2024 and sell it today you would earn a total of 100.00 from holding BKS Bank AG or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BKS Bank AG vs. Gurktaler Aktiengesellschaft
Performance |
| Timeline |
| BKS Bank AG |
| Gurktaler Aktiengesellscha |
BKS Bank and Gurktaler Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKS Bank and Gurktaler Aktiengesellscha
The main advantage of trading using opposite BKS Bank and Gurktaler Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank position performs unexpectedly, Gurktaler 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 Gurktaler Aktiengesellscha will offset losses from the drop in Gurktaler Aktiengesellscha's long position.| BKS Bank vs. RATH Aktiengesellschaft | BKS Bank vs. AT S Austria | BKS Bank vs. BAWAG Group AG | BKS Bank vs. Semperit Aktiengesellschaft Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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