Correlation Between KTM Industries and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both KTM Industries and Wiener Privatbank 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 Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on KTM Industries and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTM Industries and Wiener Privatbank.
Diversification Opportunities for KTM Industries and Wiener Privatbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTM and Wiener is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTM Industries AG and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of KTM Industries i.e., KTM Industries and Wiener Privatbank go up and down completely randomly.
Pair Corralation between KTM Industries and Wiener Privatbank
If you would invest 665.00 in Wiener Privatbank SE on November 4, 2024 and sell it today you would earn a total of 35.00 from holding Wiener Privatbank SE or generate 5.26% 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. Wiener Privatbank SE
Performance |
| Timeline |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wiener Privatbank |
KTM Industries and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTM Industries and Wiener Privatbank
The main advantage of trading using opposite KTM Industries and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTM Industries position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank'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 |
| Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. CNH Industrial NV | Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. Universal Music Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |