Correlation Between Oberbank and Austrian Traded
Can any of the company-specific risk be diversified away by investing in both Oberbank and Austrian Traded 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 Oberbank and Austrian Traded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberbank AG and Austrian Traded Index, you can compare the effects of market volatilities on Oberbank and Austrian Traded 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 Oberbank with a short position of Austrian Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberbank and Austrian Traded.
Diversification Opportunities for Oberbank and Austrian Traded
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oberbank and Austrian is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oberbank AG and Austrian Traded Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austrian Traded Index and Oberbank 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 Oberbank AG are associated (or correlated) with Austrian Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austrian Traded Index has no effect on the direction of Oberbank i.e., Oberbank and Austrian Traded go up and down completely randomly.
Pair Corralation between Oberbank and Austrian Traded
Assuming the 90 days trading horizon Oberbank AG is expected to generate 0.13 times more return on investment than Austrian Traded. However, Oberbank AG is 7.88 times less risky than Austrian Traded. It trades about 0.21 of its potential returns per unit of risk. Austrian Traded Index is currently generating about -0.02 per unit of risk. If you would invest 7,020 in Oberbank AG on August 31, 2024 and sell it today you would earn a total of 40.00 from holding Oberbank AG or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oberbank AG vs. Austrian Traded Index
Performance |
| Timeline |
Oberbank and Austrian Traded Volatility Contrast
Predicted Return Density |
| Returns |
Oberbank AG
Pair trading matchups for Oberbank
Austrian Traded Index
Pair trading matchups for Austrian Traded
Pair Trading with Oberbank and Austrian Traded
The main advantage of trading using opposite Oberbank and Austrian Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberbank position performs unexpectedly, Austrian Traded 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 Austrian Traded will offset losses from the drop in Austrian Traded's long position.| Oberbank vs. RATH Aktiengesellschaft | Oberbank vs. OMV Aktiengesellschaft | Oberbank vs. AT S Austria | Oberbank vs. BAWAG Group AG |
| Austrian Traded vs. Erste Group Bank | Austrian Traded vs. SBM Offshore NV | Austrian Traded vs. UNIQA Insurance Group | Austrian Traded vs. Wiener Privatbank SE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |