Correlation Between Oberbank and RATH Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Oberbank and RATH 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 Oberbank and RATH Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberbank AG and RATH Aktiengesellschaft, you can compare the effects of market volatilities on Oberbank and RATH 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 Oberbank with a short position of RATH Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberbank and RATH Aktiengesellscha.
Diversification Opportunities for Oberbank and RATH Aktiengesellscha
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oberbank and RATH is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oberbank AG and RATH Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATH Aktiengesellschaft 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 RATH Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATH Aktiengesellschaft has no effect on the direction of Oberbank i.e., Oberbank and RATH Aktiengesellscha go up and down completely randomly.
Pair Corralation between Oberbank and RATH Aktiengesellscha
Assuming the 90 days trading horizon Oberbank AG is expected to under-perform the RATH Aktiengesellscha. In addition to that, Oberbank is 1.16 times more volatile than RATH Aktiengesellschaft. It trades about -0.02 of its total potential returns per unit of risk. RATH Aktiengesellschaft is currently generating about 0.01 per unit of volatility. If you would invest 2,620 in RATH Aktiengesellschaft on August 26, 2024 and sell it today you would lose (120.00) from holding RATH Aktiengesellschaft or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oberbank AG vs. RATH Aktiengesellschaft
Performance |
| Timeline |
| Oberbank AG |
| RATH Aktiengesellschaft |
Oberbank and RATH Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberbank and RATH Aktiengesellscha
The main advantage of trading using opposite Oberbank and RATH Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberbank position performs unexpectedly, RATH 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 RATH Aktiengesellscha will offset losses from the drop in RATH Aktiengesellscha's long position.| Oberbank vs. UNIQA Insurance Group | Oberbank vs. BKS Bank AG | Oberbank vs. Vienna Insurance Group | Oberbank vs. Addiko Bank AG |
| RATH Aktiengesellscha vs. Oberbank AG | RATH Aktiengesellscha vs. Semperit Aktiengesellschaft Holding | RATH Aktiengesellscha vs. Telekom Austria AG | RATH Aktiengesellscha vs. Oesterr Post 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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