Correlation Between Semperit Aktiengesellscha and BAWAG Group
Can any of the company-specific risk be diversified away by investing in both Semperit Aktiengesellscha and BAWAG Group 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 Semperit Aktiengesellscha and BAWAG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semperit Aktiengesellschaft Holding and BAWAG Group AG, you can compare the effects of market volatilities on Semperit Aktiengesellscha and BAWAG Group 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 Semperit Aktiengesellscha with a short position of BAWAG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semperit Aktiengesellscha and BAWAG Group.
Diversification Opportunities for Semperit Aktiengesellscha and BAWAG Group
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Semperit and BAWAG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Semperit Aktiengesellschaft Ho and BAWAG Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAWAG Group AG and Semperit Aktiengesellscha 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 Semperit Aktiengesellschaft Holding are associated (or correlated) with BAWAG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAWAG Group AG has no effect on the direction of Semperit Aktiengesellscha i.e., Semperit Aktiengesellscha and BAWAG Group go up and down completely randomly.
Pair Corralation between Semperit Aktiengesellscha and BAWAG Group
Assuming the 90 days trading horizon Semperit Aktiengesellscha is expected to generate 7.68 times less return on investment than BAWAG Group. But when comparing it to its historical volatility, Semperit Aktiengesellschaft Holding is 1.37 times less risky than BAWAG Group. It trades about 0.03 of its potential returns per unit of risk. BAWAG Group AG is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,990 in BAWAG Group AG on August 23, 2024 and sell it today you would earn a total of 345.00 from holding BAWAG Group AG or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semperit Aktiengesellschaft Ho vs. BAWAG Group AG
Performance |
| Timeline |
| Semperit Aktiengesellscha |
| BAWAG Group AG |
Semperit Aktiengesellscha and BAWAG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semperit Aktiengesellscha and BAWAG Group
The main advantage of trading using opposite Semperit Aktiengesellscha and BAWAG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semperit Aktiengesellscha position performs unexpectedly, BAWAG Group 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 BAWAG Group will offset losses from the drop in BAWAG Group's long position.| Semperit Aktiengesellscha vs. Wienerberger AG | Semperit Aktiengesellscha vs. Andritz AG | Semperit Aktiengesellscha vs. Lenzing Aktiengesellschaft | Semperit Aktiengesellscha vs. Voestalpine AG |
| BAWAG Group vs. Erste Group Bank | BAWAG Group vs. Raiffeisen Bank International | BAWAG Group vs. UNIQA Insurance Group | BAWAG Group vs. OMV Aktiengesellschaft |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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