Correlation Between Lenzing Aktiengesellscha and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both Lenzing Aktiengesellscha and Raiffeisen 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 Lenzing Aktiengesellscha and Raiffeisen Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lenzing Aktiengesellschaft and Raiffeisen Bank International, you can compare the effects of market volatilities on Lenzing Aktiengesellscha and Raiffeisen 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 Lenzing Aktiengesellscha with a short position of Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenzing Aktiengesellscha and Raiffeisen Bank.
Diversification Opportunities for Lenzing Aktiengesellscha and Raiffeisen Bank
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lenzing and Raiffeisen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lenzing Aktiengesellschaft and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte 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 Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of Lenzing Aktiengesellscha i.e., Lenzing Aktiengesellscha and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between Lenzing Aktiengesellscha and Raiffeisen Bank
Assuming the 90 days trading horizon Lenzing Aktiengesellschaft is expected to generate 1.43 times more return on investment than Raiffeisen Bank. However, Lenzing Aktiengesellscha is 1.43 times more volatile than Raiffeisen Bank International. It trades about 0.02 of its potential returns per unit of risk. Raiffeisen Bank International is currently generating about -0.01 per unit of risk. If you would invest 2,895 in Lenzing Aktiengesellschaft on August 27, 2024 and sell it today you would earn a total of 60.00 from holding Lenzing Aktiengesellschaft or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenzing Aktiengesellschaft vs. Raiffeisen Bank International
Performance |
| Timeline |
| Lenzing Aktiengesellscha |
| Raiffeisen Bank Inte |
Lenzing Aktiengesellscha and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenzing Aktiengesellscha and Raiffeisen Bank
The main advantage of trading using opposite Lenzing Aktiengesellscha and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenzing Aktiengesellscha position performs unexpectedly, Raiffeisen 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank's long position.| Lenzing Aktiengesellscha vs. Voestalpine AG | Lenzing Aktiengesellscha vs. Andritz AG | Lenzing Aktiengesellscha vs. Wienerberger AG | Lenzing Aktiengesellscha vs. OMV Aktiengesellschaft |
| Raiffeisen Bank vs. Vienna Insurance Group | Raiffeisen Bank vs. SBM Offshore NV | Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |