Correlation Between Oesterr Post and Voestalpine
Can any of the company-specific risk be diversified away by investing in both Oesterr Post and Voestalpine 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 Voestalpine 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 Voestalpine AG, you can compare the effects of market volatilities on Oesterr Post and Voestalpine 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 Voestalpine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oesterr Post and Voestalpine.
Diversification Opportunities for Oesterr Post and Voestalpine
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oesterr and Voestalpine is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oesterr Post AG and Voestalpine AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voestalpine 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 Voestalpine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voestalpine AG has no effect on the direction of Oesterr Post i.e., Oesterr Post and Voestalpine go up and down completely randomly.
Pair Corralation between Oesterr Post and Voestalpine
Assuming the 90 days trading horizon Oesterr Post AG is expected to generate 0.38 times more return on investment than Voestalpine. However, Oesterr Post AG is 2.67 times less risky than Voestalpine. It trades about 0.02 of its potential returns per unit of risk. Voestalpine AG is currently generating about -0.17 per unit of risk. If you would invest 2,900 in Oesterr Post AG on August 27, 2024 and sell it today you would earn a total of 10.00 from holding Oesterr Post AG or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oesterr Post AG vs. Voestalpine AG
Performance |
| Timeline |
| Oesterr Post AG |
| Voestalpine AG |
Oesterr Post and Voestalpine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oesterr Post and Voestalpine
The main advantage of trading using opposite Oesterr Post and Voestalpine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oesterr Post position performs unexpectedly, Voestalpine 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 Voestalpine will offset losses from the drop in Voestalpine's long position.| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. UNIQA Insurance Group | Oesterr Post vs. VERBUND AG |
| Voestalpine vs. OMV Aktiengesellschaft | Voestalpine vs. Raiffeisen Bank International | Voestalpine vs. Andritz AG | Voestalpine vs. VERBUND 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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