Correlation Between VERBUND AG and AT S
Can any of the company-specific risk be diversified away by investing in both VERBUND AG and AT S 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 VERBUND AG and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VERBUND AG and AT S Austria, you can compare the effects of market volatilities on VERBUND AG and AT S 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 VERBUND AG with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of VERBUND AG and AT S.
Diversification Opportunities for VERBUND AG and AT S
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VERBUND and ATS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding VERBUND AG and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and VERBUND AG 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 VERBUND AG are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of VERBUND AG i.e., VERBUND AG and AT S go up and down completely randomly.
Pair Corralation between VERBUND AG and AT S
Assuming the 90 days trading horizon VERBUND AG is expected to under-perform the AT S. But the stock apears to be less risky and, when comparing its historical volatility, VERBUND AG is 2.99 times less risky than AT S. The stock trades about -0.09 of its potential returns per unit of risk. The AT S Austria is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,179 in AT S Austria on December 6, 2024 and sell it today you would earn a total of 43.00 from holding AT S Austria or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VERBUND AG vs. AT S Austria
Performance |
| Timeline |
| VERBUND AG |
| AT S Austria |
VERBUND AG and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VERBUND AG and AT S
The main advantage of trading using opposite VERBUND AG and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VERBUND AG position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| VERBUND AG vs. OMV Aktiengesellschaft | VERBUND AG vs. Voestalpine AG | VERBUND AG vs. Wienerberger AG | VERBUND AG vs. EVN AG |
| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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