Correlation Between Raiffeisen Bank and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and SBM Offshore 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 SBM Offshore 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 SBM Offshore NV, you can compare the effects of market volatilities on Raiffeisen Bank and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and SBM Offshore.
Diversification Opportunities for Raiffeisen Bank and SBM Offshore
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raiffeisen and SBM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and SBM Offshore go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and SBM Offshore
Assuming the 90 days trading horizon Raiffeisen Bank is expected to generate 1.23 times less return on investment than SBM Offshore. In addition to that, Raiffeisen Bank is 1.15 times more volatile than SBM Offshore NV. It trades about 0.03 of its total potential returns per unit of risk. SBM Offshore NV is currently generating about 0.04 per unit of volatility. If you would invest 1,366 in SBM Offshore NV on August 24, 2024 and sell it today you would earn a total of 412.00 from holding SBM Offshore NV or generate 30.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. SBM Offshore NV
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| SBM Offshore NV |
Raiffeisen Bank and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and SBM Offshore
The main advantage of trading using opposite Raiffeisen Bank and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore'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 |
| SBM Offshore vs. BKS Bank AG | SBM Offshore vs. Oberbank AG | SBM Offshore vs. UNIQA Insurance Group | SBM Offshore 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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