Correlation Between Raiffeisen Bank and BKS Bank
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and BKS Bank 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 BKS Bank 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 BKS Bank AG, you can compare the effects of market volatilities on Raiffeisen Bank and BKS Bank 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 BKS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and BKS Bank.
Diversification Opportunities for Raiffeisen Bank and BKS Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Raiffeisen and BKS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and BKS Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKS Bank AG 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 BKS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKS Bank AG has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and BKS Bank go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and BKS Bank
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 0.98 times more return on investment than BKS Bank. However, Raiffeisen Bank International is 1.02 times less risky than BKS Bank. It trades about 0.41 of its potential returns per unit of risk. BKS Bank AG is currently generating about -0.12 per unit of risk. If you would invest 1,911 in Raiffeisen Bank International on November 4, 2024 and sell it today you would earn a total of 285.00 from holding Raiffeisen Bank International or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. BKS Bank AG
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| BKS Bank AG |
Raiffeisen Bank and BKS Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and BKS Bank
The main advantage of trading using opposite Raiffeisen Bank and BKS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, BKS Bank 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 BKS Bank will offset losses from the drop in BKS Bank's long position.| Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. BKS Bank AG | Raiffeisen Bank vs. Vienna Insurance Group |
| BKS Bank vs. Oberbank AG | BKS Bank vs. Raiffeisen Bank International | BKS Bank vs. Wiener Privatbank SE | BKS Bank 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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