Correlation Between Erste Group and IHUNT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Erste Group and IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on Erste Group and IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and IHUNT TECHNOLOGY.
Diversification Opportunities for Erste Group and IHUNT TECHNOLOGY
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Erste and IHUNT is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT 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 IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of Erste Group i.e., Erste Group and IHUNT TECHNOLOGY go up and down completely randomly.
Pair Corralation between Erste Group and IHUNT TECHNOLOGY
Assuming the 90 days trading horizon Erste Group Bank is expected to generate 0.33 times more return on investment than IHUNT TECHNOLOGY. However, Erste Group Bank is 3.01 times less risky than IHUNT TECHNOLOGY. It trades about 0.17 of its potential returns per unit of risk. IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about 0.03 per unit of risk. If you would invest 16,606 in Erste Group Bank on October 25, 2024 and sell it today you would earn a total of 14,054 from holding Erste Group Bank or generate 84.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.34% |
| Values | Daily Returns |
Erste Group Bank vs. IHUNT TECHNOLOGY IMPORT EXPORT
Performance |
| Timeline |
| Erste Group Bank |
| IHUNT TECHNOLOGY IMPORT |
Erste Group and IHUNT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and IHUNT TECHNOLOGY
The main advantage of trading using opposite Erste Group and IHUNT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY will offset losses from the drop in IHUNT TECHNOLOGY's long position.| Erste Group vs. Turism Hotelur | Erste Group vs. Patria Bank SA | Erste Group vs. IM Vinaria Purcari | Erste Group vs. AROBS TRANSILVANIA SOFTWARE |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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