Correlation Between RATH Aktiengesellscha and Oesterr Post
Can any of the company-specific risk be diversified away by investing in both RATH Aktiengesellscha and Oesterr Post 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 Oesterr Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RATH Aktiengesellschaft and Oesterr Post AG, you can compare the effects of market volatilities on RATH Aktiengesellscha and Oesterr Post 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 Oesterr Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of RATH Aktiengesellscha and Oesterr Post.
Diversification Opportunities for RATH Aktiengesellscha and Oesterr Post
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RATH and Oesterr is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding RATH Aktiengesellschaft and Oesterr Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oesterr Post 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 Oesterr Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oesterr Post AG has no effect on the direction of RATH Aktiengesellscha i.e., RATH Aktiengesellscha and Oesterr Post go up and down completely randomly.
Pair Corralation between RATH Aktiengesellscha and Oesterr Post
Assuming the 90 days trading horizon RATH Aktiengesellschaft is expected to under-perform the Oesterr Post. In addition to that, RATH Aktiengesellscha is 1.57 times more volatile than Oesterr Post AG. It trades about -0.06 of its total potential returns per unit of risk. Oesterr Post AG is currently generating about -0.02 per unit of volatility. 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 | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
RATH Aktiengesellschaft vs. Oesterr Post AG
Performance |
| Timeline |
| RATH Aktiengesellschaft |
| Oesterr Post AG |
RATH Aktiengesellscha and Oesterr Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RATH Aktiengesellscha and Oesterr Post
The main advantage of trading using opposite RATH Aktiengesellscha and Oesterr Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RATH Aktiengesellscha position performs unexpectedly, Oesterr Post 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 Oesterr Post will offset losses from the drop in Oesterr Post's long position.| RATH Aktiengesellscha vs. Oberbank AG | RATH Aktiengesellscha vs. Semperit Aktiengesellschaft Holding | RATH Aktiengesellscha vs. Telekom Austria AG | RATH Aktiengesellscha vs. Oesterr Post AG |
| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. UNIQA Insurance Group | Oesterr Post 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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