Correlation Between Oberbank and S IMMO
Can any of the company-specific risk be diversified away by investing in both Oberbank and S IMMO 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 S IMMO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberbank AG and S IMMO AG, you can compare the effects of market volatilities on Oberbank and S IMMO 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 S IMMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberbank and S IMMO.
Diversification Opportunities for Oberbank and S IMMO
Very good diversification
The 3 months correlation between Oberbank and SPI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oberbank AG and S IMMO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S IMMO AG 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 S IMMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S IMMO AG has no effect on the direction of Oberbank i.e., Oberbank and S IMMO go up and down completely randomly.
Pair Corralation between Oberbank and S IMMO
Assuming the 90 days trading horizon Oberbank is expected to generate 1.63 times less return on investment than S IMMO. But when comparing it to its historical volatility, Oberbank AG is 4.42 times less risky than S IMMO. It trades about 0.21 of its potential returns per unit of risk. S IMMO AG is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,210 in S IMMO AG on August 30, 2024 and sell it today you would earn a total of 20.00 from holding S IMMO AG or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oberbank AG vs. S IMMO AG
Performance |
| Timeline |
| Oberbank AG |
| S IMMO AG |
Oberbank and S IMMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberbank and S IMMO
The main advantage of trading using opposite Oberbank and S IMMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberbank position performs unexpectedly, S IMMO 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 S IMMO will offset losses from the drop in S IMMO's long position.| Oberbank vs. RATH Aktiengesellschaft | Oberbank vs. AT S Austria | Oberbank vs. BAWAG Group AG | Oberbank vs. Semperit Aktiengesellschaft Holding |
| S IMMO vs. CA Immobilien Anlagen | S IMMO vs. RATH Aktiengesellschaft | S IMMO vs. AT S Austria | S IMMO vs. BAWAG Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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