Correlation Between OMV Aktiengesellscha and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both OMV Aktiengesellscha and Raiffeisen Bank 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 Raiffeisen Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OMV Aktiengesellschaft and Raiffeisen Bank International, you can compare the effects of market volatilities on OMV Aktiengesellscha and Raiffeisen Bank 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 Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Raiffeisen Bank.
Diversification Opportunities for OMV Aktiengesellscha and Raiffeisen Bank
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMV and Raiffeisen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte 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 Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between OMV Aktiengesellscha and Raiffeisen Bank
Assuming the 90 days trading horizon OMV Aktiengesellschaft is expected to generate 0.64 times more return on investment than Raiffeisen Bank. However, OMV Aktiengesellschaft is 1.56 times less risky than Raiffeisen Bank. It trades about -0.01 of its potential returns per unit of risk. Raiffeisen Bank International is currently generating about -0.01 per unit of risk. If you would invest 4,074 in OMV Aktiengesellschaft on August 27, 2024 and sell it today you would lose (188.00) from holding OMV Aktiengesellschaft or give up 4.61% 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. Raiffeisen Bank International
Performance |
| Timeline |
| OMV Aktiengesellschaft |
| Raiffeisen Bank Inte |
OMV Aktiengesellscha and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OMV Aktiengesellscha and Raiffeisen Bank
The main advantage of trading using opposite OMV Aktiengesellscha and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV Aktiengesellscha position performs unexpectedly, Raiffeisen Bank 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank'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 |
| Raiffeisen Bank vs. Vienna Insurance Group | Raiffeisen Bank vs. SBM Offshore NV | Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen Bank vs. CNH Industrial NV |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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