Correlation Between Raiffeisen Bank and PX Prague
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and PX Prague 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 PX Prague 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 PX Prague Stock, you can compare the effects of market volatilities on Raiffeisen Bank and PX Prague 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 PX Prague. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and PX Prague.
Diversification Opportunities for Raiffeisen Bank and PX Prague
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raiffeisen and PX Prague is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and PX Prague Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PX Prague Stock 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 PX Prague. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PX Prague Stock has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and PX Prague go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and PX Prague
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to under-perform the PX Prague. In addition to that, Raiffeisen Bank is 6.33 times more volatile than PX Prague Stock. It trades about -0.04 of its total potential returns per unit of risk. PX Prague Stock is currently generating about 0.32 per unit of volatility. If you would invest 164,334 in PX Prague Stock on August 29, 2024 and sell it today you would earn a total of 5,401 from holding PX Prague Stock or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. PX Prague Stock
Performance |
| Timeline |
Raiffeisen Bank and PX Prague Volatility Contrast
Predicted Return Density |
| Returns |
Raiffeisen Bank International
Pair trading matchups for Raiffeisen Bank
PX Prague Stock
Pair trading matchups for PX Prague
Pair Trading with Raiffeisen Bank and PX Prague
The main advantage of trading using opposite Raiffeisen Bank and PX Prague positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, PX Prague 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 PX Prague will offset losses from the drop in PX Prague's long position.| Raiffeisen Bank vs. Komercni Banka AS | Raiffeisen Bank vs. Vienna Insurance Group | Raiffeisen Bank vs. Moneta Money Bank | Raiffeisen Bank vs. Erste Group Bank |
| PX Prague vs. Komercni Banka AS | PX Prague vs. Erste Group Bank | PX Prague vs. Vienna Insurance Group | PX Prague 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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