Correlation Between OMV Aktiengesellscha and Wienerberger
Can any of the company-specific risk be diversified away by investing in both OMV Aktiengesellscha and Wienerberger 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 Wienerberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OMV Aktiengesellschaft and Wienerberger AG, you can compare the effects of market volatilities on OMV Aktiengesellscha and Wienerberger 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 Wienerberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Wienerberger.
Diversification Opportunities for OMV Aktiengesellscha and Wienerberger
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OMV and Wienerberger is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Wienerberger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger 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 Wienerberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger AG has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Wienerberger go up and down completely randomly.
Pair Corralation between OMV Aktiengesellscha and Wienerberger
Assuming the 90 days trading horizon OMV Aktiengesellscha is expected to generate 1.9 times less return on investment than Wienerberger. But when comparing it to its historical volatility, OMV Aktiengesellschaft is 1.92 times less risky than Wienerberger. It trades about 0.18 of its potential returns per unit of risk. Wienerberger AG is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,640 in Wienerberger AG on November 3, 2024 and sell it today you would earn a total of 186.00 from holding Wienerberger AG or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMV Aktiengesellschaft vs. Wienerberger AG
Performance |
| Timeline |
| OMV Aktiengesellschaft |
| Wienerberger AG |
OMV Aktiengesellscha and Wienerberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OMV Aktiengesellscha and Wienerberger
The main advantage of trading using opposite OMV Aktiengesellscha and Wienerberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV Aktiengesellscha position performs unexpectedly, Wienerberger 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 Wienerberger will offset losses from the drop in Wienerberger'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 |
| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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