Correlation Between IMMOFINANZ and Polytec Holding
Can any of the company-specific risk be diversified away by investing in both IMMOFINANZ and Polytec Holding 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 IMMOFINANZ and Polytec Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMMOFINANZ AG and Polytec Holding AG, you can compare the effects of market volatilities on IMMOFINANZ and Polytec Holding 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 IMMOFINANZ with a short position of Polytec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMMOFINANZ and Polytec Holding.
Diversification Opportunities for IMMOFINANZ and Polytec Holding
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IMMOFINANZ and Polytec is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding IMMOFINANZ AG and Polytec Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polytec Holding AG and IMMOFINANZ 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 IMMOFINANZ AG are associated (or correlated) with Polytec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polytec Holding AG has no effect on the direction of IMMOFINANZ i.e., IMMOFINANZ and Polytec Holding go up and down completely randomly.
Pair Corralation between IMMOFINANZ and Polytec Holding
Assuming the 90 days trading horizon IMMOFINANZ AG is expected to generate 1.05 times more return on investment than Polytec Holding. However, IMMOFINANZ is 1.05 times more volatile than Polytec Holding AG. It trades about 0.03 of its potential returns per unit of risk. Polytec Holding AG is currently generating about -0.09 per unit of risk. If you would invest 1,266 in IMMOFINANZ AG on August 26, 2024 and sell it today you would earn a total of 262.00 from holding IMMOFINANZ AG or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IMMOFINANZ AG vs. Polytec Holding AG
Performance |
| Timeline |
| IMMOFINANZ AG |
| Polytec Holding AG |
IMMOFINANZ and Polytec Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMMOFINANZ and Polytec Holding
The main advantage of trading using opposite IMMOFINANZ and Polytec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMMOFINANZ position performs unexpectedly, Polytec Holding 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 Polytec Holding will offset losses from the drop in Polytec Holding's long position.| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. S IMMO AG | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ vs. Raiffeisen Bank International |
| Polytec Holding vs. Voestalpine AG | Polytec Holding vs. AT S Austria | Polytec Holding vs. Andritz AG | Polytec Holding vs. Schoeller Bleckmann Oilfield Equipment |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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