Correlation Between Lanakam SA and Austriacard Holdings
Can any of the company-specific risk be diversified away by investing in both Lanakam SA and Austriacard Holdings 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 Lanakam SA and Austriacard Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lanakam SA and Austriacard Holdings AG, you can compare the effects of market volatilities on Lanakam SA and Austriacard Holdings 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 Lanakam SA with a short position of Austriacard Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanakam SA and Austriacard Holdings.
Diversification Opportunities for Lanakam SA and Austriacard Holdings
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lanakam and Austriacard is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lanakam SA and Austriacard Holdings AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austriacard Holdings and Lanakam SA 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 Lanakam SA are associated (or correlated) with Austriacard Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austriacard Holdings has no effect on the direction of Lanakam SA i.e., Lanakam SA and Austriacard Holdings go up and down completely randomly.
Pair Corralation between Lanakam SA and Austriacard Holdings
Assuming the 90 days trading horizon Lanakam SA is expected to generate 1.74 times more return on investment than Austriacard Holdings. However, Lanakam SA is 1.74 times more volatile than Austriacard Holdings AG. It trades about 0.01 of its potential returns per unit of risk. Austriacard Holdings AG is currently generating about 0.01 per unit of risk. If you would invest 91.00 in Lanakam SA on September 19, 2024 and sell it today you would lose (1.00) from holding Lanakam SA or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lanakam SA vs. Austriacard Holdings AG
Performance |
| Timeline |
| Lanakam SA |
| Austriacard Holdings |
Lanakam SA and Austriacard Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanakam SA and Austriacard Holdings
The main advantage of trading using opposite Lanakam SA and Austriacard Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanakam SA position performs unexpectedly, Austriacard Holdings 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 Austriacard Holdings will offset losses from the drop in Austriacard Holdings' long position.| Lanakam SA vs. Bioter SA | Lanakam SA vs. Avax SA | Lanakam SA vs. National Bank of | Lanakam SA vs. EL D Mouzakis |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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