Correlation Between Oesterr Post and Unilever PLC
Can any of the company-specific risk be diversified away by investing in both Oesterr Post and Unilever PLC 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 Unilever PLC 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 Unilever PLC, you can compare the effects of market volatilities on Oesterr Post and Unilever PLC 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 Unilever PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oesterr Post and Unilever PLC.
Diversification Opportunities for Oesterr Post and Unilever PLC
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oesterr and Unilever is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Oesterr Post AG and Unilever PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever PLC 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 Unilever PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever PLC has no effect on the direction of Oesterr Post i.e., Oesterr Post and Unilever PLC go up and down completely randomly.
Pair Corralation between Oesterr Post and Unilever PLC
Assuming the 90 days trading horizon Oesterr Post AG is expected to generate 0.89 times more return on investment than Unilever PLC. However, Oesterr Post AG is 1.13 times less risky than Unilever PLC. It trades about -0.04 of its potential returns per unit of risk. Unilever PLC is currently generating about -0.09 per unit of risk. If you would invest 2,900 in Oesterr Post AG on August 29, 2024 and sell it today you would lose (25.00) from holding Oesterr Post AG or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oesterr Post AG vs. Unilever PLC
Performance |
| Timeline |
| Oesterr Post AG |
| Unilever PLC |
Oesterr Post and Unilever PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oesterr Post and Unilever PLC
The main advantage of trading using opposite Oesterr Post and Unilever PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oesterr Post position performs unexpectedly, Unilever PLC 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 Unilever PLC will offset losses from the drop in Unilever PLC's long position.| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. VERBUND AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. Wienerberger AG |
| Unilever PLC vs. The Este Lauder | Unilever PLC vs. RATH Aktiengesellschaft | Unilever PLC vs. AT S Austria | Unilever PLC vs. BAWAG Group 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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