Correlation Between EVN AG and Josef Manner
Can any of the company-specific risk be diversified away by investing in both EVN AG and Josef Manner 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 EVN AG and Josef Manner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVN AG and Josef Manner Comp, you can compare the effects of market volatilities on EVN AG and Josef Manner 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 EVN AG with a short position of Josef Manner. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVN AG and Josef Manner.
Diversification Opportunities for EVN AG and Josef Manner
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EVN and Josef is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding EVN AG and Josef Manner Comp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Josef Manner Comp and EVN AG 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 EVN AG are associated (or correlated) with Josef Manner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Josef Manner Comp has no effect on the direction of EVN AG i.e., EVN AG and Josef Manner go up and down completely randomly.
Pair Corralation between EVN AG and Josef Manner
Assuming the 90 days trading horizon EVN AG is expected to under-perform the Josef Manner. In addition to that, EVN AG is 1.02 times more volatile than Josef Manner Comp. It trades about -0.17 of its total potential returns per unit of risk. Josef Manner Comp is currently generating about -0.05 per unit of volatility. If you would invest 10,500 in Josef Manner Comp on August 30, 2024 and sell it today you would lose (200.00) from holding Josef Manner Comp or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
EVN AG vs. Josef Manner Comp
Performance |
| Timeline |
| EVN AG |
| Josef Manner Comp |
EVN AG and Josef Manner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVN AG and Josef Manner
The main advantage of trading using opposite EVN AG and Josef Manner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVN AG position performs unexpectedly, Josef Manner 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 Josef Manner will offset losses from the drop in Josef Manner's long position.The idea behind EVN AG and Josef Manner Comp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Josef Manner vs. EVN AG | Josef Manner vs. Oesterr Post AG | Josef Manner vs. Kapsch Traffic | Josef Manner 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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