Correlation Between Gurktaler Aktiengesellscha and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both Gurktaler Aktiengesellscha and Wiener Privatbank 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 Wiener Privatbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurktaler Aktiengesellschaft and Wiener Privatbank SE, you can compare the effects of market volatilities on Gurktaler Aktiengesellscha and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurktaler Aktiengesellscha and Wiener Privatbank.
Diversification Opportunities for Gurktaler Aktiengesellscha and Wiener Privatbank
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gurktaler and Wiener is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gurktaler Aktiengesellschaft and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of Gurktaler Aktiengesellscha i.e., Gurktaler Aktiengesellscha and Wiener Privatbank go up and down completely randomly.
Pair Corralation between Gurktaler Aktiengesellscha and Wiener Privatbank
Assuming the 90 days trading horizon Gurktaler Aktiengesellscha is expected to generate 7.33 times less return on investment than Wiener Privatbank. In addition to that, Gurktaler Aktiengesellscha is 2.53 times more volatile than Wiener Privatbank SE. It trades about 0.0 of its total potential returns per unit of risk. Wiener Privatbank SE is currently generating about 0.06 per unit of volatility. If you would invest 535.00 in Wiener Privatbank SE on September 3, 2024 and sell it today you would earn a total of 230.00 from holding Wiener Privatbank SE or generate 42.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Gurktaler Aktiengesellschaft vs. Wiener Privatbank SE
Performance |
| Timeline |
| Gurktaler Aktiengesellscha |
| Wiener Privatbank |
Gurktaler Aktiengesellscha and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurktaler Aktiengesellscha and Wiener Privatbank
The main advantage of trading using opposite Gurktaler Aktiengesellscha and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurktaler Aktiengesellscha position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank's long position.| Gurktaler Aktiengesellscha vs. Addiko Bank AG | Gurktaler Aktiengesellscha vs. CNH Industrial NV | Gurktaler Aktiengesellscha vs. Universal Music Group | Gurktaler Aktiengesellscha vs. Vienna Insurance Group |
| Wiener Privatbank vs. Vienna Insurance Group | Wiener Privatbank vs. AGRANA Beteiligungs Aktiengesellschaft | Wiener Privatbank vs. Voestalpine AG | Wiener Privatbank vs. BKS Bank 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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