Correlation Between Raiffeisen Bank and Photon Energy
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Photon Energy 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 Photon Energy 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 Photon Energy NV, you can compare the effects of market volatilities on Raiffeisen Bank and Photon Energy 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 Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Photon Energy.
Diversification Opportunities for Raiffeisen Bank and Photon Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raiffeisen and Photon is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV 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 Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Photon Energy go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Photon Energy
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 0.82 times more return on investment than Photon Energy. However, Raiffeisen Bank International is 1.23 times less risky than Photon Energy. It trades about 0.12 of its potential returns per unit of risk. Photon Energy NV is currently generating about -0.27 per unit of risk. If you would invest 42,870 in Raiffeisen Bank International on September 12, 2024 and sell it today you would earn a total of 6,610 from holding Raiffeisen Bank International or generate 15.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. Photon Energy NV
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| Photon Energy NV |
Raiffeisen Bank and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and Photon Energy
The main advantage of trading using opposite Raiffeisen Bank and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy's long position.| Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. JT ARCH INVESTMENTS | Raiffeisen Bank vs. Vienna Insurance Group |
| Photon Energy vs. Moneta Money Bank | Photon Energy vs. Komercni Banka AS | Photon Energy vs. JT ARCH INVESTMENTS | Photon Energy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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