Correlation Between Raiffeisen Bank and RATH Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and RATH Aktiengesellscha 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 RATH Aktiengesellscha 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 RATH Aktiengesellschaft, you can compare the effects of market volatilities on Raiffeisen Bank and RATH Aktiengesellscha 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 RATH Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and RATH Aktiengesellscha.
Diversification Opportunities for Raiffeisen Bank and RATH Aktiengesellscha
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raiffeisen and RATH is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and RATH Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATH Aktiengesellschaft 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 RATH Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATH Aktiengesellschaft has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and RATH Aktiengesellscha go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and RATH Aktiengesellscha
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 4.37 times more return on investment than RATH Aktiengesellscha. However, Raiffeisen Bank is 4.37 times more volatile than RATH Aktiengesellschaft. It trades about 0.25 of its potential returns per unit of risk. RATH Aktiengesellschaft is currently generating about 0.0 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 | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. RATH Aktiengesellschaft
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| RATH Aktiengesellschaft |
Raiffeisen Bank and RATH Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and RATH Aktiengesellscha
The main advantage of trading using opposite Raiffeisen Bank and RATH Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, RATH Aktiengesellscha 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 RATH Aktiengesellscha will offset losses from the drop in RATH Aktiengesellscha'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 |
| RATH Aktiengesellscha vs. Universal Music Group | RATH Aktiengesellscha vs. Wiener Privatbank SE | RATH Aktiengesellscha vs. Vienna Insurance Group | RATH Aktiengesellscha vs. SBM Offshore NV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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