Correlation Between Wienerberger and Lenzing Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Wienerberger and Lenzing Aktiengesellscha 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 Lenzing Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and Lenzing Aktiengesellschaft, you can compare the effects of market volatilities on Wienerberger and Lenzing Aktiengesellscha 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 Lenzing Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and Lenzing Aktiengesellscha.
Diversification Opportunities for Wienerberger and Lenzing Aktiengesellscha
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wienerberger and Lenzing is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and Lenzing Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenzing Aktiengesellscha 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 Lenzing Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenzing Aktiengesellscha has no effect on the direction of Wienerberger i.e., Wienerberger and Lenzing Aktiengesellscha go up and down completely randomly.
Pair Corralation between Wienerberger and Lenzing Aktiengesellscha
Assuming the 90 days trading horizon Wienerberger AG is expected to generate 0.51 times more return on investment than Lenzing Aktiengesellscha. However, Wienerberger AG is 1.96 times less risky than Lenzing Aktiengesellscha. It trades about 0.18 of its potential returns per unit of risk. Lenzing Aktiengesellschaft is currently generating about -0.2 per unit of risk. If you would invest 2,640 in Wienerberger AG on November 3, 2024 and sell it today you would earn a total of 186.00 from holding Wienerberger AG or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wienerberger AG vs. Lenzing Aktiengesellschaft
Performance |
| Timeline |
| Wienerberger AG |
| Lenzing Aktiengesellscha |
Wienerberger and Lenzing Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and Lenzing Aktiengesellscha
The main advantage of trading using opposite Wienerberger and Lenzing Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger position performs unexpectedly, Lenzing Aktiengesellscha 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 Lenzing Aktiengesellscha will offset losses from the drop in Lenzing Aktiengesellscha's long position.| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz AG |
| Lenzing Aktiengesellscha vs. Voestalpine AG | Lenzing Aktiengesellscha vs. Andritz AG | Lenzing Aktiengesellscha vs. Wienerberger AG | Lenzing Aktiengesellscha 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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