Correlation Between KTM Industries and Oberbank
Can any of the company-specific risk be diversified away by investing in both KTM Industries and Oberbank 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 Oberbank 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 Oberbank AG, you can compare the effects of market volatilities on KTM Industries and Oberbank 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 Oberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTM Industries and Oberbank.
Diversification Opportunities for KTM Industries and Oberbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTM and Oberbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTM Industries AG and Oberbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberbank 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 Oberbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberbank AG has no effect on the direction of KTM Industries i.e., KTM Industries and Oberbank go up and down completely randomly.
Pair Corralation between KTM Industries and Oberbank
If you would invest 6,980 in Oberbank AG on November 4, 2024 and sell it today you would earn a total of 20.00 from holding Oberbank AG or generate 0.29% 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. Oberbank AG
Performance |
| Timeline |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oberbank AG |
KTM Industries and Oberbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTM Industries and Oberbank
The main advantage of trading using opposite KTM Industries and Oberbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTM Industries position performs unexpectedly, Oberbank 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 Oberbank will offset losses from the drop in Oberbank'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 |
| Oberbank vs. Vienna Insurance Group | Oberbank vs. AMAG Austria Metall | Oberbank vs. Addiko Bank AG | Oberbank vs. Erste Group Bank |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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