Correlation Between OMV Aktiengesellscha and Facc AG
Can any of the company-specific risk be diversified away by investing in both OMV Aktiengesellscha and Facc AG 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 OMV Aktiengesellscha and Facc AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OMV Aktiengesellschaft and Facc AG, you can compare the effects of market volatilities on OMV Aktiengesellscha and Facc AG 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 OMV Aktiengesellscha with a short position of Facc AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Facc AG.
Diversification Opportunities for OMV Aktiengesellscha and Facc AG
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMV and Facc is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Facc AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Facc AG and OMV 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 OMV Aktiengesellschaft are associated (or correlated) with Facc AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Facc AG has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Facc AG go up and down completely randomly.
Pair Corralation between OMV Aktiengesellscha and Facc AG
Assuming the 90 days trading horizon OMV Aktiengesellschaft is expected to generate 0.42 times more return on investment than Facc AG. However, OMV Aktiengesellschaft is 2.4 times less risky than Facc AG. It trades about -0.14 of its potential returns per unit of risk. Facc AG is currently generating about -0.09 per unit of risk. If you would invest 3,894 in OMV Aktiengesellschaft on August 30, 2024 and sell it today you would lose (120.00) from holding OMV Aktiengesellschaft or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMV Aktiengesellschaft vs. Facc AG
Performance |
| Timeline |
| OMV Aktiengesellschaft |
| Facc AG |
OMV Aktiengesellscha and Facc AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OMV Aktiengesellscha and Facc AG
The main advantage of trading using opposite OMV Aktiengesellscha and Facc AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV Aktiengesellscha position performs unexpectedly, Facc AG 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 Facc AG will offset losses from the drop in Facc AG's long position.| OMV Aktiengesellscha vs. Voestalpine AG | OMV Aktiengesellscha vs. Erste Group Bank | OMV Aktiengesellscha vs. Raiffeisen Bank International | OMV Aktiengesellscha vs. VERBUND AG |
| Facc AG vs. Voestalpine AG | Facc AG vs. Lenzing Aktiengesellschaft | Facc AG vs. AT S Austria | Facc AG vs. OMV Aktiengesellschaft |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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