Correlation Between Oesterr Post and Exor NV
Can any of the company-specific risk be diversified away by investing in both Oesterr Post and Exor NV 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 Exor NV 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 Exor NV, you can compare the effects of market volatilities on Oesterr Post and Exor NV 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 Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oesterr Post and Exor NV.
Diversification Opportunities for Oesterr Post and Exor NV
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oesterr and Exor is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Oesterr Post AG and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV 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 Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of Oesterr Post i.e., Oesterr Post and Exor NV go up and down completely randomly.
Pair Corralation between Oesterr Post and Exor NV
Assuming the 90 days trading horizon Oesterr Post AG is expected to generate 0.52 times more return on investment than Exor NV. However, Oesterr Post AG is 1.92 times less risky than Exor NV. It trades about -0.02 of its potential returns per unit of risk. Exor NV is currently generating about -0.18 per unit of risk. If you would invest 2,900 in Oesterr Post AG on August 30, 2024 and sell it today you would lose (15.00) from holding Oesterr Post AG or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oesterr Post AG vs. Exor NV
Performance |
| Timeline |
| Oesterr Post AG |
| Exor NV |
Oesterr Post and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oesterr Post and Exor NV
The main advantage of trading using opposite Oesterr Post and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oesterr Post position performs unexpectedly, Exor NV 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 Exor NV will offset losses from the drop in Exor NV's long position.| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. VERBUND AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. Wienerberger AG |
| Exor NV vs. UNIQA Insurance Group | Exor NV vs. Wiener Privatbank SE | Exor NV vs. Addiko Bank AG | Exor NV vs. Erste Group Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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