Correlation Between Oesterr Post and Palfinger
Can any of the company-specific risk be diversified away by investing in both Oesterr Post and Palfinger 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 Palfinger 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 Palfinger AG, you can compare the effects of market volatilities on Oesterr Post and Palfinger 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 Palfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oesterr Post and Palfinger.
Diversification Opportunities for Oesterr Post and Palfinger
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oesterr and Palfinger is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Oesterr Post AG and Palfinger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palfinger AG 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 Palfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palfinger AG has no effect on the direction of Oesterr Post i.e., Oesterr Post and Palfinger go up and down completely randomly.
Pair Corralation between Oesterr Post and Palfinger
Assuming the 90 days trading horizon Oesterr Post AG is expected to generate 0.68 times more return on investment than Palfinger. However, Oesterr Post AG is 1.46 times less risky than Palfinger. It trades about -0.02 of its potential returns per unit of risk. Palfinger AG is currently generating about -0.07 per unit of risk. If you would invest 2,995 in Oesterr Post AG on August 27, 2024 and sell it today you would lose (100.00) from holding Oesterr Post AG or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oesterr Post AG vs. Palfinger AG
Performance |
| Timeline |
| Oesterr Post AG |
| Palfinger AG |
Oesterr Post and Palfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oesterr Post and Palfinger
The main advantage of trading using opposite Oesterr Post and Palfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oesterr Post position performs unexpectedly, Palfinger 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 Palfinger will offset losses from the drop in Palfinger's long position.| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. UNIQA Insurance Group | Oesterr Post vs. VERBUND AG |
| Palfinger vs. RATH Aktiengesellschaft | Palfinger vs. Semperit Aktiengesellschaft Holding | Palfinger vs. Oesterr Post AG | Palfinger vs. Anheuser Busch InBev SANV |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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