Correlation Between Kapsch Traffic and Josef Manner
Can any of the company-specific risk be diversified away by investing in both Kapsch Traffic and Josef Manner 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 Kapsch Traffic and Josef Manner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kapsch Traffic and Josef Manner Comp, you can compare the effects of market volatilities on Kapsch Traffic and Josef Manner 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 Kapsch Traffic with a short position of Josef Manner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kapsch Traffic and Josef Manner.
Diversification Opportunities for Kapsch Traffic and Josef Manner
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kapsch and Josef is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kapsch Traffic and Josef Manner Comp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Josef Manner Comp and Kapsch Traffic 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 Kapsch Traffic are associated (or correlated) with Josef Manner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Josef Manner Comp has no effect on the direction of Kapsch Traffic i.e., Kapsch Traffic and Josef Manner go up and down completely randomly.
Pair Corralation between Kapsch Traffic and Josef Manner
Assuming the 90 days trading horizon Kapsch Traffic is expected to under-perform the Josef Manner. But the stock apears to be less risky and, when comparing its historical volatility, Kapsch Traffic is 1.3 times less risky than Josef Manner. The stock trades about -0.46 of its potential returns per unit of risk. The Josef Manner Comp is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 10,500 in Josef Manner Comp on August 30, 2024 and sell it today you would lose (200.00) from holding Josef Manner Comp or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kapsch Traffic vs. Josef Manner Comp
Performance |
| Timeline |
| Kapsch Traffic |
| Josef Manner Comp |
Kapsch Traffic and Josef Manner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kapsch Traffic and Josef Manner
The main advantage of trading using opposite Kapsch Traffic and Josef Manner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kapsch Traffic position performs unexpectedly, Josef Manner 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 Josef Manner will offset losses from the drop in Josef Manner's long position.| Kapsch Traffic vs. Lenzing Aktiengesellschaft | Kapsch Traffic vs. Vienna Insurance Group | Kapsch Traffic vs. Semperit Aktiengesellschaft Holding | Kapsch Traffic vs. EVN AG |
| Josef Manner vs. EVN AG | Josef Manner vs. Oesterr Post AG | Josef Manner vs. Kapsch Traffic | Josef Manner 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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