Correlation Between OMV Aktiengesellscha and Lenzing Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both OMV Aktiengesellscha and Lenzing 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 OMV Aktiengesellscha and Lenzing Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OMV Aktiengesellschaft and Lenzing Aktiengesellschaft, you can compare the effects of market volatilities on OMV Aktiengesellscha and Lenzing 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 OMV Aktiengesellscha with a short position of Lenzing Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Lenzing Aktiengesellscha.
Diversification Opportunities for OMV Aktiengesellscha and Lenzing Aktiengesellscha
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMV and Lenzing is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Lenzing Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenzing Aktiengesellscha 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 Lenzing Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenzing Aktiengesellscha has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Lenzing Aktiengesellscha go up and down completely randomly.
Pair Corralation between OMV Aktiengesellscha and Lenzing Aktiengesellscha
Assuming the 90 days trading horizon OMV Aktiengesellschaft is expected to under-perform the Lenzing Aktiengesellscha. But the stock apears to be less risky and, when comparing its historical volatility, OMV Aktiengesellschaft is 2.22 times less risky than Lenzing Aktiengesellscha. The stock trades about -0.01 of its potential returns per unit of risk. The Lenzing Aktiengesellschaft is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,895 in Lenzing Aktiengesellschaft on August 27, 2024 and sell it today you would earn a total of 60.00 from holding Lenzing Aktiengesellschaft or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMV Aktiengesellschaft vs. Lenzing Aktiengesellschaft
Performance |
| Timeline |
| OMV Aktiengesellschaft |
| Lenzing Aktiengesellscha |
OMV Aktiengesellscha and Lenzing Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OMV Aktiengesellscha and Lenzing Aktiengesellscha
The main advantage of trading using opposite OMV Aktiengesellscha and Lenzing Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV Aktiengesellscha position performs unexpectedly, Lenzing 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 Lenzing Aktiengesellscha will offset losses from the drop in Lenzing Aktiengesellscha'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 |
| Lenzing Aktiengesellscha vs. Voestalpine AG | Lenzing Aktiengesellscha vs. Andritz AG | Lenzing Aktiengesellscha vs. Wienerberger AG | Lenzing Aktiengesellscha 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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