Correlation Between Gurktaler and Erste Group
Can any of the company-specific risk be diversified away by investing in both Gurktaler and Erste 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 Gurktaler and Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurktaler AG ST and Erste Group Bank, you can compare the effects of market volatilities on Gurktaler and Erste 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 Gurktaler with a short position of Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurktaler and Erste Group.
Diversification Opportunities for Gurktaler and Erste Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gurktaler and Erste is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gurktaler AG ST and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank and Gurktaler 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 Gurktaler AG ST are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Gurktaler i.e., Gurktaler and Erste Group go up and down completely randomly.
Pair Corralation between Gurktaler and Erste Group
Assuming the 90 days trading horizon Gurktaler is expected to generate 1.77 times less return on investment than Erste Group. In addition to that, Gurktaler is 13.11 times more volatile than Erste Group Bank. It trades about 0.01 of its total potential returns per unit of risk. Erste Group Bank is currently generating about 0.12 per unit of volatility. If you would invest 4,964 in Erste Group Bank on August 23, 2024 and sell it today you would earn a total of 210.00 from holding Erste Group Bank or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gurktaler AG ST vs. Erste Group Bank
Performance |
| Timeline |
| Gurktaler AG ST |
| Erste Group Bank |
Gurktaler and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurktaler and Erste Group
The main advantage of trading using opposite Gurktaler and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurktaler position performs unexpectedly, Erste 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 Erste Group will offset losses from the drop in Erste Group's long position.| Gurktaler vs. Gurktaler Aktiengesellschaft | Gurktaler vs. Schoeller Bleckmann Oilfield Equipment | Gurktaler vs. AGRANA Beteiligungs Aktiengesellschaft | Gurktaler vs. BKS Bank AG |
| Erste Group vs. Raiffeisen Bank International | Erste Group vs. OMV Aktiengesellschaft | Erste Group vs. Voestalpine AG | Erste Group vs. Vienna Insurance Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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