Correlation Between Exor NV and Warimpex Finanz
Can any of the company-specific risk be diversified away by investing in both Exor NV and Warimpex Finanz 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 Warimpex Finanz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exor NV and Warimpex Finanz und, you can compare the effects of market volatilities on Exor NV and Warimpex Finanz 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 Warimpex Finanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exor NV and Warimpex Finanz.
Diversification Opportunities for Exor NV and Warimpex Finanz
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exor and Warimpex is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Exor NV and Warimpex Finanz und in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warimpex Finanz und 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 Warimpex Finanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warimpex Finanz und has no effect on the direction of Exor NV i.e., Exor NV and Warimpex Finanz go up and down completely randomly.
Pair Corralation between Exor NV and Warimpex Finanz
Assuming the 90 days trading horizon Exor NV is expected to generate 0.32 times more return on investment than Warimpex Finanz. However, Exor NV is 3.17 times less risky than Warimpex Finanz. It trades about 0.05 of its potential returns per unit of risk. Warimpex Finanz und is currently generating about 0.0 per unit of risk. If you would invest 7,181 in Exor NV on September 3, 2024 and sell it today you would earn a total of 2,139 from holding Exor NV or generate 29.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exor NV vs. Warimpex Finanz und
Performance |
| Timeline |
| Exor NV |
| Warimpex Finanz und |
Exor NV and Warimpex Finanz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exor NV and Warimpex Finanz
The main advantage of trading using opposite Exor NV and Warimpex Finanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exor NV position performs unexpectedly, Warimpex Finanz 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 Warimpex Finanz will offset losses from the drop in Warimpex Finanz's long position.| Exor NV vs. RATH Aktiengesellschaft | Exor NV vs. AT S Austria | Exor NV vs. BAWAG Group AG | Exor NV vs. Semperit Aktiengesellschaft Holding |
| Warimpex Finanz vs. IMMOFINANZ AG | Warimpex Finanz vs. Polytec Holding AG | Warimpex Finanz vs. S IMMO AG | Warimpex Finanz vs. Zumtobel Group 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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