Correlation Between KTM Industries and Addiko Bank
Can any of the company-specific risk be diversified away by investing in both KTM Industries and Addiko Bank 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 KTM Industries and Addiko Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTM Industries AG and Addiko Bank AG, you can compare the effects of market volatilities on KTM Industries and Addiko Bank 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 KTM Industries with a short position of Addiko Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTM Industries and Addiko Bank.
Diversification Opportunities for KTM Industries and Addiko Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTM and Addiko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTM Industries AG and Addiko Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addiko Bank AG and KTM Industries 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 KTM Industries AG are associated (or correlated) with Addiko Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addiko Bank AG has no effect on the direction of KTM Industries i.e., KTM Industries and Addiko Bank go up and down completely randomly.
Pair Corralation between KTM Industries and Addiko Bank
If you would invest (100.00) in KTM Industries AG on November 4, 2024 and sell it today you would earn a total of 100.00 from holding KTM Industries AG or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KTM Industries AG vs. Addiko Bank AG
Performance |
| Timeline |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Addiko Bank AG |
KTM Industries and Addiko Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTM Industries and Addiko Bank
The main advantage of trading using opposite KTM Industries and Addiko Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTM Industries position performs unexpectedly, Addiko Bank 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 Addiko Bank will offset losses from the drop in Addiko Bank's long position.| KTM Industries vs. Wiener Privatbank SE | KTM Industries vs. Erste Group Bank | KTM Industries vs. Vienna Insurance Group | KTM Industries vs. Addiko Bank AG |
| Addiko Bank vs. Oberbank AG | Addiko Bank vs. AMAG Austria Metall | Addiko Bank vs. Vienna Insurance Group | Addiko Bank vs. CNH Industrial NV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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