Correlation Between Raiffeisen Bank and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on Raiffeisen Bank and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Vienna Insurance.
Diversification Opportunities for Raiffeisen Bank and Vienna Insurance
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Raiffeisen and Vienna is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Vienna Insurance go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Vienna Insurance
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 2.0 times more return on investment than Vienna Insurance. However, Raiffeisen Bank is 2.0 times more volatile than Vienna Insurance Group. It trades about 0.38 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.34 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. Vienna Insurance Group
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| Vienna Insurance |
Raiffeisen Bank and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and Vienna Insurance
The main advantage of trading using opposite Raiffeisen Bank and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance'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 |
| Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. JT ARCH INVESTMENTS | Vienna Insurance vs. Komercni Banka AS | Vienna Insurance vs. Erste Group 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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