Correlation Between Raiffeisen Bank and JT ARCH
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and JT ARCH 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 Raiffeisen Bank and JT ARCH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raiffeisen Bank International and JT ARCH INVESTMENTS, you can compare the effects of market volatilities on Raiffeisen Bank and JT ARCH 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 Raiffeisen Bank with a short position of JT ARCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and JT ARCH.
Diversification Opportunities for Raiffeisen Bank and JT ARCH
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Raiffeisen and JTINA is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and JT ARCH INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JT ARCH INVESTMENTS and Raiffeisen Bank 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 Raiffeisen Bank International are associated (or correlated) with JT ARCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JT ARCH INVESTMENTS has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and JT ARCH go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and JT ARCH
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 5.22 times more return on investment than JT ARCH. However, Raiffeisen Bank is 5.22 times more volatile than JT ARCH INVESTMENTS. It trades about 0.27 of its potential returns per unit of risk. JT ARCH INVESTMENTS is currently generating about 0.39 per unit of risk. If you would invest 47,140 in Raiffeisen Bank International on November 3, 2024 and sell it today you would earn a total of 8,320 from holding Raiffeisen Bank International or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Raiffeisen Bank International vs. JT ARCH INVESTMENTS
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| JT ARCH INVESTMENTS |
Raiffeisen Bank and JT ARCH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and JT ARCH
The main advantage of trading using opposite Raiffeisen Bank and JT ARCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, JT ARCH 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 JT ARCH will offset losses from the drop in JT ARCH's long position.| Raiffeisen Bank vs. JT ARCH INVESTMENTS | Raiffeisen Bank vs. Komercni Banka AS | Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. Erste Group Bank |
| JT ARCH vs. Raiffeisen Bank International | JT ARCH vs. Komercni Banka AS | JT ARCH vs. Vienna Insurance Group | JT ARCH vs. Moneta Money Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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