Correlation Between CA Immobilien and Voestalpine
Can any of the company-specific risk be diversified away by investing in both CA Immobilien and Voestalpine 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 Voestalpine 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 Voestalpine AG, you can compare the effects of market volatilities on CA Immobilien and Voestalpine 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 Voestalpine. Check out your portfolio center. Please also check ongoing floating volatility patterns of CA Immobilien and Voestalpine.
Diversification Opportunities for CA Immobilien and Voestalpine
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAI and Voestalpine is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CA Immobilien Anlagen and Voestalpine AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voestalpine AG 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 Voestalpine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voestalpine AG has no effect on the direction of CA Immobilien i.e., CA Immobilien and Voestalpine go up and down completely randomly.
Pair Corralation between CA Immobilien and Voestalpine
Assuming the 90 days trading horizon CA Immobilien Anlagen is expected to generate 0.87 times more return on investment than Voestalpine. However, CA Immobilien Anlagen is 1.15 times less risky than Voestalpine. It trades about -0.13 of its potential returns per unit of risk. Voestalpine AG is currently generating about -0.2 per unit of risk. If you would invest 2,426 in CA Immobilien Anlagen on August 26, 2024 and sell it today you would lose (128.00) from holding CA Immobilien Anlagen or give up 5.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CA Immobilien Anlagen vs. Voestalpine AG
Performance |
| Timeline |
| CA Immobilien Anlagen |
| Voestalpine AG |
CA Immobilien and Voestalpine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CA Immobilien and Voestalpine
The main advantage of trading using opposite CA Immobilien and Voestalpine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CA Immobilien position performs unexpectedly, Voestalpine 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 Voestalpine will offset losses from the drop in Voestalpine's long position.| CA Immobilien vs. S IMMO AG | CA Immobilien vs. RATH Aktiengesellschaft | CA Immobilien vs. AT S Austria | CA Immobilien vs. BAWAG Group AG |
| Voestalpine vs. OMV Aktiengesellschaft | Voestalpine vs. Raiffeisen Bank International | Voestalpine vs. Andritz AG | Voestalpine vs. VERBUND 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |