Correlation Between Exor NV and BAWAG Group
Can any of the company-specific risk be diversified away by investing in both Exor NV and BAWAG Group 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 Exor NV and BAWAG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exor NV and BAWAG Group AG, you can compare the effects of market volatilities on Exor NV and BAWAG Group 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 Exor NV with a short position of BAWAG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exor NV and BAWAG Group.
Diversification Opportunities for Exor NV and BAWAG Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exor and BAWAG is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Exor NV and BAWAG Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAWAG Group AG and Exor NV 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 Exor NV are associated (or correlated) with BAWAG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAWAG Group AG has no effect on the direction of Exor NV i.e., Exor NV and BAWAG Group go up and down completely randomly.
Pair Corralation between Exor NV and BAWAG Group
Assuming the 90 days trading horizon Exor NV is expected to under-perform the BAWAG Group. In addition to that, Exor NV is 1.44 times more volatile than BAWAG Group AG. It trades about -0.12 of its total potential returns per unit of risk. BAWAG Group AG is currently generating about 0.11 per unit of volatility. If you would invest 7,195 in BAWAG Group AG on August 29, 2024 and sell it today you would earn a total of 195.00 from holding BAWAG Group AG or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exor NV vs. BAWAG Group AG
Performance |
| Timeline |
| Exor NV |
| BAWAG Group AG |
Exor NV and BAWAG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exor NV and BAWAG Group
The main advantage of trading using opposite Exor NV and BAWAG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exor NV position performs unexpectedly, BAWAG Group 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 BAWAG Group will offset losses from the drop in BAWAG Group's long position.| Exor NV vs. UNIQA Insurance Group | Exor NV vs. Wiener Privatbank SE | Exor NV vs. Addiko Bank AG | Exor NV vs. Erste Group Bank |
| BAWAG Group vs. Erste Group Bank | BAWAG Group vs. Raiffeisen Bank International | BAWAG Group vs. UNIQA Insurance Group | BAWAG Group vs. OMV Aktiengesellschaft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |