Correlation Between Wienerberger and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both Wienerberger and TRADEDOUBLER 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 Wienerberger and TRADEDOUBLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and TRADEDOUBLER AB SK, you can compare the effects of market volatilities on Wienerberger and TRADEDOUBLER 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 Wienerberger with a short position of TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and TRADEDOUBLER.
Diversification Opportunities for Wienerberger and TRADEDOUBLER
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wienerberger and TRADEDOUBLER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK and Wienerberger 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 Wienerberger AG are associated (or correlated) with TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of Wienerberger i.e., Wienerberger and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between Wienerberger and TRADEDOUBLER
Assuming the 90 days trading horizon Wienerberger AG is expected to generate 0.4 times more return on investment than TRADEDOUBLER. However, Wienerberger AG is 2.47 times less risky than TRADEDOUBLER. It trades about -0.01 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about -0.02 per unit of risk. If you would invest 2,924 in Wienerberger AG on September 14, 2024 and sell it today you would lose (198.00) from holding Wienerberger AG or give up 6.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Wienerberger AG vs. TRADEDOUBLER AB SK
Performance |
| Timeline |
| Wienerberger AG |
| TRADEDOUBLER AB SK |
Wienerberger and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and TRADEDOUBLER
The main advantage of trading using opposite Wienerberger and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| Wienerberger vs. Heidelberg Materials AG | Wienerberger vs. Superior Plus Corp | Wienerberger vs. NMI Holdings | Wienerberger vs. SIVERS SEMICONDUCTORS AB |
| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB | TRADEDOUBLER vs. NorAm Drilling AS | TRADEDOUBLER vs. Norsk Hydro ASA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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