Correlation Between Oesterr Post and CA Immobilien

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Can any of the company-specific risk be diversified away by investing in both Oesterr Post and CA Immobilien 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 Oesterr Post and CA Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oesterr Post AG and CA Immobilien Anlagen, you can compare the effects of market volatilities on Oesterr Post and CA Immobilien 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 Oesterr Post with a short position of CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oesterr Post and CA Immobilien.

Diversification Opportunities for Oesterr Post and CA Immobilien

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Oesterr and CAI is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oesterr Post AG and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen and Oesterr Post 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 Oesterr Post AG are associated (or correlated) with CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of Oesterr Post i.e., Oesterr Post and CA Immobilien go up and down completely randomly.

Pair Corralation between Oesterr Post and CA Immobilien

Assuming the 90 days trading horizon Oesterr Post AG is expected to generate 0.36 times more return on investment than CA Immobilien. However, Oesterr Post AG is 2.76 times less risky than CA Immobilien. It trades about 0.24 of its potential returns per unit of risk. CA Immobilien Anlagen is currently generating about 0.09 per unit of risk. If you would invest  2,970  in Oesterr Post AG on November 18, 2024 and sell it today you would earn a total of  100.00  from holding Oesterr Post AG or generate 3.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Oesterr Post AG  vs.  CA Immobilien Anlagen

 Performance 
       Timeline  
Oesterr Post AG 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Oesterr Post AG are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Oesterr Post may actually be approaching a critical reversion point that can send shares even higher in March 2025.
CA Immobilien Anlagen 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CA Immobilien Anlagen are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, CA Immobilien is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Oesterr Post and CA Immobilien Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oesterr Post and CA Immobilien

The main advantage of trading using opposite Oesterr Post and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oesterr Post position performs unexpectedly, CA Immobilien 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.
The idea behind Oesterr Post AG and CA Immobilien Anlagen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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