Correlation Between CA Immobilien and Erste Group
Can any of the company-specific risk be diversified away by investing in both CA Immobilien and Erste Group 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 CA Immobilien and Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CA Immobilien Anlagen and Erste Group Bank, you can compare the effects of market volatilities on CA Immobilien and Erste Group 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 CA Immobilien with a short position of Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CA Immobilien and Erste Group.
Diversification Opportunities for CA Immobilien and Erste Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CAI and Erste is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CA Immobilien Anlagen and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank and CA Immobilien 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 CA Immobilien Anlagen are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of CA Immobilien i.e., CA Immobilien and Erste Group go up and down completely randomly.
Pair Corralation between CA Immobilien and Erste Group
Assuming the 90 days trading horizon CA Immobilien is expected to generate 3.47 times less return on investment than Erste Group. But when comparing it to its historical volatility, CA Immobilien Anlagen is 1.21 times less risky than Erste Group. It trades about 0.13 of its potential returns per unit of risk. Erste Group Bank is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 5,348 in Erste Group Bank on September 18, 2024 and sell it today you would earn a total of 548.00 from holding Erste Group Bank or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CA Immobilien Anlagen vs. Erste Group Bank
Performance |
| Timeline |
| CA Immobilien Anlagen |
| Erste Group Bank |
CA Immobilien and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CA Immobilien and Erste Group
The main advantage of trading using opposite CA Immobilien and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CA Immobilien position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| CA Immobilien vs. IMMOFINANZ AG | CA Immobilien vs. Wienerberger AG | CA Immobilien vs. Vienna Insurance Group | CA Immobilien vs. Oesterr Post AG |
| Erste Group vs. Raiffeisen Bank International | Erste Group vs. OMV Aktiengesellschaft | Erste Group vs. Voestalpine AG | Erste Group vs. Vienna Insurance Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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