Correlation Between RATH Aktiengesellscha and Oberbank
Can any of the company-specific risk be diversified away by investing in both RATH Aktiengesellscha and Oberbank 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 RATH Aktiengesellscha and Oberbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RATH Aktiengesellschaft and Oberbank AG, you can compare the effects of market volatilities on RATH Aktiengesellscha and Oberbank 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 RATH Aktiengesellscha with a short position of Oberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of RATH Aktiengesellscha and Oberbank.
Diversification Opportunities for RATH Aktiengesellscha and Oberbank
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between RATH and Oberbank is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding RATH Aktiengesellschaft and Oberbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberbank AG and RATH Aktiengesellscha 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 RATH Aktiengesellschaft are associated (or correlated) with Oberbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberbank AG has no effect on the direction of RATH Aktiengesellscha i.e., RATH Aktiengesellscha and Oberbank go up and down completely randomly.
Pair Corralation between RATH Aktiengesellscha and Oberbank
Assuming the 90 days trading horizon RATH Aktiengesellscha is expected to generate 21.58 times less return on investment than Oberbank. In addition to that, RATH Aktiengesellscha is 4.1 times more volatile than Oberbank AG. It trades about 0.0 of its total potential returns per unit of risk. Oberbank AG is currently generating about 0.21 per unit of volatility. If you would invest 7,020 in Oberbank AG on August 31, 2024 and sell it today you would earn a total of 40.00 from holding Oberbank AG or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RATH Aktiengesellschaft vs. Oberbank AG
Performance |
| Timeline |
| RATH Aktiengesellschaft |
| Oberbank AG |
RATH Aktiengesellscha and Oberbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RATH Aktiengesellscha and Oberbank
The main advantage of trading using opposite RATH Aktiengesellscha and Oberbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RATH Aktiengesellscha position performs unexpectedly, Oberbank 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 Oberbank will offset losses from the drop in Oberbank's long position.| RATH Aktiengesellscha vs. AT S Austria | RATH Aktiengesellscha vs. BAWAG Group AG | RATH Aktiengesellscha vs. Semperit Aktiengesellschaft Holding | RATH Aktiengesellscha vs. Telekom Austria AG |
| Oberbank vs. RATH Aktiengesellschaft | Oberbank vs. OMV Aktiengesellschaft | Oberbank vs. AT S Austria | Oberbank 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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