Correlation Between Raiffeisen Bank and IMMOFINANZ
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and IMMOFINANZ 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 IMMOFINANZ 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 IMMOFINANZ AG, you can compare the effects of market volatilities on Raiffeisen Bank and IMMOFINANZ 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 IMMOFINANZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and IMMOFINANZ.
Diversification Opportunities for Raiffeisen Bank and IMMOFINANZ
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raiffeisen and IMMOFINANZ is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ 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 IMMOFINANZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMMOFINANZ AG has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and IMMOFINANZ go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and IMMOFINANZ
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 1.08 times more return on investment than IMMOFINANZ. However, Raiffeisen Bank is 1.08 times more volatile than IMMOFINANZ AG. It trades about 0.03 of its potential returns per unit of risk. IMMOFINANZ AG is currently generating about 0.03 per unit of risk. If you would invest 1,494 in Raiffeisen Bank International on August 23, 2024 and sell it today you would earn a total of 306.00 from holding Raiffeisen Bank International or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. IMMOFINANZ AG
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| IMMOFINANZ AG |
Raiffeisen Bank and IMMOFINANZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and IMMOFINANZ
The main advantage of trading using opposite Raiffeisen Bank and IMMOFINANZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, IMMOFINANZ 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 IMMOFINANZ will offset losses from the drop in IMMOFINANZ's long position.| Raiffeisen Bank vs. Vienna Insurance Group | Raiffeisen Bank vs. AGRANA Beteiligungs Aktiengesellschaft | Raiffeisen Bank vs. Voestalpine AG | Raiffeisen Bank vs. BKS Bank AG |
| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. S IMMO AG | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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