Correlation Between Gurktaler Aktiengesellscha and Oesterr Post
Can any of the company-specific risk be diversified away by investing in both Gurktaler Aktiengesellscha and Oesterr Post 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 Aktiengesellscha and Oesterr Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurktaler Aktiengesellschaft and Oesterr Post AG, you can compare the effects of market volatilities on Gurktaler Aktiengesellscha and Oesterr Post 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 Aktiengesellscha with a short position of Oesterr Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurktaler Aktiengesellscha and Oesterr Post.
Diversification Opportunities for Gurktaler Aktiengesellscha and Oesterr Post
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gurktaler and Oesterr is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gurktaler Aktiengesellschaft and Oesterr Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oesterr Post AG and Gurktaler Aktiengesellscha 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 Aktiengesellschaft are associated (or correlated) with Oesterr Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oesterr Post AG has no effect on the direction of Gurktaler Aktiengesellscha i.e., Gurktaler Aktiengesellscha and Oesterr Post go up and down completely randomly.
Pair Corralation between Gurktaler Aktiengesellscha and Oesterr Post
Assuming the 90 days trading horizon Gurktaler Aktiengesellschaft is expected to generate 2.78 times more return on investment than Oesterr Post. However, Gurktaler Aktiengesellscha is 2.78 times more volatile than Oesterr Post AG. It trades about 0.33 of its potential returns per unit of risk. Oesterr Post AG is currently generating about 0.59 per unit of risk. If you would invest 780.00 in Gurktaler Aktiengesellschaft on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Gurktaler Aktiengesellschaft or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gurktaler Aktiengesellschaft vs. Oesterr Post AG
Performance |
| Timeline |
| Gurktaler Aktiengesellscha |
| Oesterr Post AG |
Gurktaler Aktiengesellscha and Oesterr Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurktaler Aktiengesellscha and Oesterr Post
The main advantage of trading using opposite Gurktaler Aktiengesellscha and Oesterr Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurktaler Aktiengesellscha position performs unexpectedly, Oesterr Post 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 Oesterr Post will offset losses from the drop in Oesterr Post's long position.The idea behind Gurktaler Aktiengesellschaft and Oesterr Post AG 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.
| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. UNIQA Insurance Group | Oesterr Post 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |