Correlation Between Raiffeisen Bank and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Wiener Privatbank 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 Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on Raiffeisen Bank and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Wiener Privatbank.
Diversification Opportunities for Raiffeisen Bank and Wiener Privatbank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Raiffeisen and Wiener is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Wiener Privatbank go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Wiener Privatbank
If you would invest 765.00 in Wiener Privatbank SE on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Wiener Privatbank SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Raiffeisen Bank International vs. Wiener Privatbank SE
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| Wiener Privatbank |
Raiffeisen Bank and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and Wiener Privatbank
The main advantage of trading using opposite Raiffeisen Bank and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank'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 |
| Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. BAWAG Group AG | Wiener Privatbank vs. Addiko Bank AG |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |