Correlation Between Raiffeisen Bank and Cleen Energy
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Cleen 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 Cleen 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 Cleen Energy AG, you can compare the effects of market volatilities on Raiffeisen Bank and Cleen 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 Cleen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Cleen Energy.
Diversification Opportunities for Raiffeisen Bank and Cleen Energy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raiffeisen and Cleen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Cleen Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleen Energy 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 Cleen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleen Energy AG has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Cleen Energy go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Cleen Energy
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 0.39 times more return on investment than Cleen Energy. However, Raiffeisen Bank International is 2.58 times less risky than Cleen Energy. It trades about 0.25 of its potential returns per unit of risk. Cleen Energy AG is currently generating about -0.16 per unit of risk. If you would invest 1,649 in Raiffeisen Bank International on September 1, 2024 and sell it today you would earn a total of 197.00 from holding Raiffeisen Bank International or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Raiffeisen Bank International vs. Cleen Energy AG
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| Cleen Energy AG |
Raiffeisen Bank and Cleen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and Cleen Energy
The main advantage of trading using opposite Raiffeisen Bank and Cleen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, Cleen 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 Cleen Energy will offset losses from the drop in Cleen Energy's long position.| Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen Bank vs. SBM Offshore NV | Raiffeisen Bank vs. Oberbank AG |
| Cleen Energy vs. Addiko Bank AG | Cleen Energy vs. SBM Offshore NV | Cleen Energy vs. Raiffeisen Bank International | Cleen 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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