Correlation Between VERBUND AG and Josef Manner
Can any of the company-specific risk be diversified away by investing in both VERBUND AG and Josef Manner 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 Josef Manner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VERBUND AG and Josef Manner Comp, you can compare the effects of market volatilities on VERBUND AG and Josef Manner 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 Josef Manner. Check out your portfolio center. Please also check ongoing floating volatility patterns of VERBUND AG and Josef Manner.
Diversification Opportunities for VERBUND AG and Josef Manner
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VERBUND and Josef is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding VERBUND AG and Josef Manner Comp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Josef Manner Comp 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 Josef Manner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Josef Manner Comp has no effect on the direction of VERBUND AG i.e., VERBUND AG and Josef Manner go up and down completely randomly.
Pair Corralation between VERBUND AG and Josef Manner
Assuming the 90 days trading horizon VERBUND AG is expected to under-perform the Josef Manner. In addition to that, VERBUND AG is 1.49 times more volatile than Josef Manner Comp. It trades about -0.04 of its total potential returns per unit of risk. Josef Manner Comp is currently generating about -0.05 per unit of volatility. If you would invest 10,500 in Josef Manner Comp on August 30, 2024 and sell it today you would lose (200.00) from holding Josef Manner Comp or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
VERBUND AG vs. Josef Manner Comp
Performance |
| Timeline |
| VERBUND AG |
| Josef Manner Comp |
VERBUND AG and Josef Manner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VERBUND AG and Josef Manner
The main advantage of trading using opposite VERBUND AG and Josef Manner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VERBUND AG position performs unexpectedly, Josef Manner 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 Josef Manner will offset losses from the drop in Josef Manner's long position.| VERBUND AG vs. OMV Aktiengesellschaft | VERBUND AG vs. Voestalpine AG | VERBUND AG vs. Wienerberger AG | VERBUND AG vs. EVN AG |
| Josef Manner vs. EVN AG | Josef Manner vs. Oesterr Post AG | Josef Manner vs. Kapsch Traffic | Josef Manner vs. VERBUND 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |