Correlation Between Raiffeisen Bank and MT 1997
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and MT 1997 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 MT 1997 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 MT 1997 AS, you can compare the effects of market volatilities on Raiffeisen Bank and MT 1997 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 MT 1997. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and MT 1997.
Diversification Opportunities for Raiffeisen Bank and MT 1997
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Raiffeisen and KLIKY is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and MT 1997 AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT 1997 AS 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 MT 1997. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT 1997 AS has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and MT 1997 go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and MT 1997
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 1.3 times more return on investment than MT 1997. However, Raiffeisen Bank is 1.3 times more volatile than MT 1997 AS. It trades about 0.38 of its potential returns per unit of risk. MT 1997 AS is currently generating about 0.08 per unit of risk. If you would invest 48,370 in Raiffeisen Bank International on November 3, 2024 and sell it today you would earn a total of 7,090 from holding Raiffeisen Bank International or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Raiffeisen Bank International vs. MT 1997 AS
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| MT 1997 AS |
Raiffeisen Bank and MT 1997 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and MT 1997
The main advantage of trading using opposite Raiffeisen Bank and MT 1997 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, MT 1997 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 MT 1997 will offset losses from the drop in MT 1997'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 |
| MT 1997 vs. Raiffeisen Bank International | MT 1997 vs. UNIQA Insurance Group | MT 1997 vs. Moneta Money Bank | MT 1997 vs. Vienna Insurance Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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