Correlation Between IMMOFINANZ and Wienerberger
Can any of the company-specific risk be diversified away by investing in both IMMOFINANZ and Wienerberger 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 Wienerberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMMOFINANZ AG and Wienerberger AG, you can compare the effects of market volatilities on IMMOFINANZ and Wienerberger 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 Wienerberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMMOFINANZ and Wienerberger.
Diversification Opportunities for IMMOFINANZ and Wienerberger
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IMMOFINANZ and Wienerberger is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding IMMOFINANZ AG and Wienerberger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger 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 Wienerberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger AG has no effect on the direction of IMMOFINANZ i.e., IMMOFINANZ and Wienerberger go up and down completely randomly.
Pair Corralation between IMMOFINANZ and Wienerberger
Assuming the 90 days trading horizon IMMOFINANZ AG is expected to generate 1.15 times more return on investment than Wienerberger. However, IMMOFINANZ is 1.15 times more volatile than Wienerberger AG. It trades about 0.04 of its potential returns per unit of risk. Wienerberger AG is currently generating about 0.02 per unit of risk. If you would invest 1,239 in IMMOFINANZ AG on August 30, 2024 and sell it today you would earn a total of 331.00 from holding IMMOFINANZ AG or generate 26.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IMMOFINANZ AG vs. Wienerberger AG
Performance |
| Timeline |
| IMMOFINANZ AG |
| Wienerberger AG |
IMMOFINANZ and Wienerberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMMOFINANZ and Wienerberger
The main advantage of trading using opposite IMMOFINANZ and Wienerberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMMOFINANZ position performs unexpectedly, Wienerberger 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 Wienerberger will offset losses from the drop in Wienerberger's long position.| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. S IMMO AG | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ vs. Raiffeisen Bank International |
| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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