Correlation Between CNH Industrial and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both CNH Industrial and Wiener Privatbank 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 CNH Industrial and Wiener Privatbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNH Industrial NV and Wiener Privatbank SE, you can compare the effects of market volatilities on CNH Industrial and Wiener Privatbank 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 CNH Industrial with a short position of Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNH Industrial and Wiener Privatbank.
Diversification Opportunities for CNH Industrial and Wiener Privatbank
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNH and Wiener is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CNH Industrial NV and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank and CNH Industrial 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 CNH Industrial NV are associated (or correlated) with Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of CNH Industrial i.e., CNH Industrial and Wiener Privatbank go up and down completely randomly.
Pair Corralation between CNH Industrial and Wiener Privatbank
If you would invest 1,059 in CNH Industrial NV on August 27, 2024 and sell it today you would earn a total of 139.00 from holding CNH Industrial NV or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNH Industrial NV vs. Wiener Privatbank SE
Performance |
| Timeline |
| CNH Industrial NV |
| Wiener Privatbank |
CNH Industrial and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNH Industrial and Wiener Privatbank
The main advantage of trading using opposite CNH Industrial and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNH Industrial position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank's long position.| CNH Industrial vs. RATH Aktiengesellschaft | CNH Industrial vs. AT S Austria | CNH Industrial vs. BAWAG Group AG | CNH Industrial vs. Semperit Aktiengesellschaft Holding |
| Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. UNIQA Insurance Group | Wiener Privatbank vs. BKS Bank AG | Wiener Privatbank 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |