Correlation Between Erste Group and COREBRIDGE FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Erste Group and COREBRIDGE FINANCIAL 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 Erste Group and COREBRIDGE FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erste Group Bank and COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on Erste Group and COREBRIDGE FINANCIAL 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 Erste Group with a short position of COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and COREBRIDGE FINANCIAL.
Diversification Opportunities for Erste Group and COREBRIDGE FINANCIAL
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Erste and COREBRIDGE is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL INC and Erste Group 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 Erste Group Bank are associated (or correlated) with COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of Erste Group i.e., Erste Group and COREBRIDGE FINANCIAL go up and down completely randomly.
Pair Corralation between Erste Group and COREBRIDGE FINANCIAL
Assuming the 90 days trading horizon Erste Group Bank is expected to generate 0.69 times more return on investment than COREBRIDGE FINANCIAL. However, Erste Group Bank is 1.45 times less risky than COREBRIDGE FINANCIAL. It trades about 0.1 of its potential returns per unit of risk. COREBRIDGE FINANCIAL INC is currently generating about 0.07 per unit of risk. If you would invest 2,951 in Erste Group Bank on October 13, 2024 and sell it today you would earn a total of 3,073 from holding Erste Group Bank or generate 104.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.61% |
| Values | Daily Returns |
Erste Group Bank vs. COREBRIDGE FINANCIAL INC
Performance |
| Timeline |
| Erste Group Bank |
| COREBRIDGE FINANCIAL INC |
Erste Group and COREBRIDGE FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and COREBRIDGE FINANCIAL
The main advantage of trading using opposite Erste Group and COREBRIDGE FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL will offset losses from the drop in COREBRIDGE FINANCIAL's long position.| Erste Group vs. Apple Inc | Erste Group vs. Apple Inc | Erste Group vs. Apple Inc | Erste Group vs. Apple Inc |
| COREBRIDGE FINANCIAL vs. Erste Group Bank | COREBRIDGE FINANCIAL vs. Cincinnati Financial Corp | COREBRIDGE FINANCIAL vs. Virtu Financial | COREBRIDGE FINANCIAL vs. United Insurance Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |