Correlation Between Josef Manner and Gurktaler Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Josef Manner and Gurktaler Aktiengesellscha 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 Josef Manner and Gurktaler Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Josef Manner Comp and Gurktaler Aktiengesellschaft, you can compare the effects of market volatilities on Josef Manner and Gurktaler Aktiengesellscha 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 Josef Manner with a short position of Gurktaler Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Josef Manner and Gurktaler Aktiengesellscha.
Diversification Opportunities for Josef Manner and Gurktaler Aktiengesellscha
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Josef and Gurktaler is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Josef Manner Comp and Gurktaler Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurktaler Aktiengesellscha and Josef Manner 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 Josef Manner Comp are associated (or correlated) with Gurktaler Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurktaler Aktiengesellscha has no effect on the direction of Josef Manner i.e., Josef Manner and Gurktaler Aktiengesellscha go up and down completely randomly.
Pair Corralation between Josef Manner and Gurktaler Aktiengesellscha
Assuming the 90 days trading horizon Josef Manner is expected to generate 162.0 times less return on investment than Gurktaler Aktiengesellscha. But when comparing it to its historical volatility, Josef Manner Comp is 1.5 times less risky than Gurktaler Aktiengesellscha. It trades about 0.0 of its potential returns per unit of risk. Gurktaler Aktiengesellschaft is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,032 in Gurktaler Aktiengesellschaft on August 30, 2024 and sell it today you would lose (232.00) from holding Gurktaler Aktiengesellschaft or give up 22.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Josef Manner Comp vs. Gurktaler Aktiengesellschaft
Performance |
| Timeline |
| Josef Manner Comp |
| Gurktaler Aktiengesellscha |
Josef Manner and Gurktaler Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Josef Manner and Gurktaler Aktiengesellscha
The main advantage of trading using opposite Josef Manner and Gurktaler Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Josef Manner position performs unexpectedly, Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha will offset losses from the drop in Gurktaler Aktiengesellscha's long position.| Josef Manner vs. EVN AG | Josef Manner vs. Oesterr Post AG | Josef Manner vs. Kapsch Traffic | Josef Manner vs. VERBUND 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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