Correlation Between Raiffeisen Bank and Fuchs Petrolub
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Fuchs Petrolub 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 Fuchs Petrolub 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 Fuchs Petrolub SE, you can compare the effects of market volatilities on Raiffeisen Bank and Fuchs Petrolub 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 Fuchs Petrolub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Fuchs Petrolub.
Diversification Opportunities for Raiffeisen Bank and Fuchs Petrolub
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Raiffeisen and Fuchs is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Fuchs Petrolub SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuchs Petrolub SE 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 Fuchs Petrolub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuchs Petrolub SE has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Fuchs Petrolub go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Fuchs Petrolub
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 1.71 times more return on investment than Fuchs Petrolub. However, Raiffeisen Bank is 1.71 times more volatile than Fuchs Petrolub SE. It trades about 0.06 of its potential returns per unit of risk. Fuchs Petrolub SE is currently generating about 0.02 per unit of risk. If you would invest 1,768 in Raiffeisen Bank International on August 31, 2024 and sell it today you would earn a total of 47.00 from holding Raiffeisen Bank International or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Raiffeisen Bank International vs. Fuchs Petrolub SE
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| Fuchs Petrolub SE |
Raiffeisen Bank and Fuchs Petrolub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and Fuchs Petrolub
The main advantage of trading using opposite Raiffeisen Bank and Fuchs Petrolub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, Fuchs Petrolub 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 Fuchs Petrolub will offset losses from the drop in Fuchs Petrolub's long position.| Raiffeisen Bank vs. Vienna Insurance Group | Raiffeisen Bank vs. Wiener Privatbank SE | Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen Bank vs. BKS Bank AG |
| Fuchs Petrolub vs. Wiener Privatbank SE | Fuchs Petrolub vs. BKS Bank AG | Fuchs Petrolub vs. AMAG Austria Metall | Fuchs Petrolub vs. Raiffeisen Bank International |
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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