Correlation Between Coloseum Holding and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both Coloseum Holding and Raiffeisen Bank 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 Coloseum Holding and Raiffeisen Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloseum Holding as and Raiffeisen Bank International, you can compare the effects of market volatilities on Coloseum Holding and Raiffeisen Bank 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 Coloseum Holding with a short position of Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloseum Holding and Raiffeisen Bank.
Diversification Opportunities for Coloseum Holding and Raiffeisen Bank
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coloseum and Raiffeisen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Coloseum Holding as and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte and Coloseum Holding 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 Coloseum Holding as are associated (or correlated) with Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of Coloseum Holding i.e., Coloseum Holding and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between Coloseum Holding and Raiffeisen Bank
Assuming the 90 days trading horizon Coloseum Holding as is expected to under-perform the Raiffeisen Bank. In addition to that, Coloseum Holding is 1.5 times more volatile than Raiffeisen Bank International. It trades about -0.2 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about -0.01 per unit of volatility. If you would invest 46,800 in Raiffeisen Bank International on August 28, 2024 and sell it today you would lose (770.00) from holding Raiffeisen Bank International or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloseum Holding as vs. Raiffeisen Bank International
Performance |
| Timeline |
| Coloseum Holding |
| Raiffeisen Bank Inte |
Coloseum Holding and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloseum Holding and Raiffeisen Bank
The main advantage of trading using opposite Coloseum Holding and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloseum Holding position performs unexpectedly, Raiffeisen Bank 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank's long position.| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Prabos Plus as |
| Raiffeisen Bank vs. Cez AS | Raiffeisen Bank vs. Kofola CeskoSlovensko as | Raiffeisen Bank vs. Primoco UAV SE | Raiffeisen Bank vs. MT 1997 AS |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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