Correlation Between BKS Bank and Ottakringer Getrnke
Can any of the company-specific risk be diversified away by investing in both BKS Bank and Ottakringer Getrnke 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 Ottakringer Getrnke 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 Ottakringer Getrnke AG, you can compare the effects of market volatilities on BKS Bank and Ottakringer Getrnke 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 Ottakringer Getrnke. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and Ottakringer Getrnke.
Diversification Opportunities for BKS Bank and Ottakringer Getrnke
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BKS and Ottakringer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG and Ottakringer Getrnke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ottakringer Getrnke 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 Ottakringer Getrnke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ottakringer Getrnke has no effect on the direction of BKS Bank i.e., BKS Bank and Ottakringer Getrnke go up and down completely randomly.
Pair Corralation between BKS Bank and Ottakringer Getrnke
If you would invest (100.00) in Ottakringer Getrnke AG on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Ottakringer Getrnke AG or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BKS Bank AG vs. Ottakringer Getrnke AG
Performance |
| Timeline |
| BKS Bank AG |
| Ottakringer Getrnke |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BKS Bank and Ottakringer Getrnke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKS Bank and Ottakringer Getrnke
The main advantage of trading using opposite BKS Bank and Ottakringer Getrnke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank position performs unexpectedly, Ottakringer Getrnke 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 Ottakringer Getrnke will offset losses from the drop in Ottakringer Getrnke's long position.| BKS Bank vs. UNIQA Insurance Group | BKS Bank vs. Universal Music Group | BKS Bank vs. Erste Group Bank | BKS Bank vs. CNH Industrial NV |
| Ottakringer Getrnke vs. UNIQA Insurance Group | Ottakringer Getrnke vs. CNH Industrial NV | Ottakringer Getrnke vs. Universal Music Group | Ottakringer Getrnke vs. SBM Offshore NV |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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