Correlation Between Lenzing Aktiengesellscha and Oesterr Post
Can any of the company-specific risk be diversified away by investing in both Lenzing Aktiengesellscha and Oesterr Post 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 Lenzing Aktiengesellscha and Oesterr Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lenzing Aktiengesellschaft and Oesterr Post AG, you can compare the effects of market volatilities on Lenzing Aktiengesellscha and Oesterr Post 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 Lenzing Aktiengesellscha with a short position of Oesterr Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenzing Aktiengesellscha and Oesterr Post.
Diversification Opportunities for Lenzing Aktiengesellscha and Oesterr Post
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lenzing and Oesterr is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lenzing Aktiengesellschaft and Oesterr Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oesterr Post AG and Lenzing Aktiengesellscha 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 Lenzing Aktiengesellschaft are associated (or correlated) with Oesterr Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oesterr Post AG has no effect on the direction of Lenzing Aktiengesellscha i.e., Lenzing Aktiengesellscha and Oesterr Post go up and down completely randomly.
Pair Corralation between Lenzing Aktiengesellscha and Oesterr Post
Assuming the 90 days trading horizon Lenzing Aktiengesellschaft is expected to generate 1.95 times more return on investment than Oesterr Post. However, Lenzing Aktiengesellscha is 1.95 times more volatile than Oesterr Post AG. It trades about -0.06 of its potential returns per unit of risk. Oesterr Post AG is currently generating about -0.12 per unit of risk. If you would invest 2,995 in Lenzing Aktiengesellschaft on September 18, 2024 and sell it today you would lose (65.00) from holding Lenzing Aktiengesellschaft or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenzing Aktiengesellschaft vs. Oesterr Post AG
Performance |
| Timeline |
| Lenzing Aktiengesellscha |
| Oesterr Post AG |
Lenzing Aktiengesellscha and Oesterr Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenzing Aktiengesellscha and Oesterr Post
The main advantage of trading using opposite Lenzing Aktiengesellscha and Oesterr Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenzing Aktiengesellscha position performs unexpectedly, Oesterr Post 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 Oesterr Post will offset losses from the drop in Oesterr Post's long position.| Lenzing Aktiengesellscha vs. Voestalpine AG | Lenzing Aktiengesellscha vs. Andritz AG | Lenzing Aktiengesellscha vs. Wienerberger AG | Lenzing Aktiengesellscha vs. OMV Aktiengesellschaft |
| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. VERBUND AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. Wienerberger 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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