Correlation Between Wienerberger and Schoeller Bleckmann
Can any of the company-specific risk be diversified away by investing in both Wienerberger and Schoeller Bleckmann 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 Schoeller Bleckmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and Schoeller Bleckmann Oilfield Equipment, you can compare the effects of market volatilities on Wienerberger and Schoeller Bleckmann 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 Schoeller Bleckmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and Schoeller Bleckmann.
Diversification Opportunities for Wienerberger and Schoeller Bleckmann
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wienerberger and Schoeller is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and Schoeller Bleckmann Oilfield E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schoeller Bleckmann 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 Schoeller Bleckmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schoeller Bleckmann has no effect on the direction of Wienerberger i.e., Wienerberger and Schoeller Bleckmann go up and down completely randomly.
Pair Corralation between Wienerberger and Schoeller Bleckmann
Assuming the 90 days trading horizon Wienerberger AG is expected to under-perform the Schoeller Bleckmann. But the stock apears to be less risky and, when comparing its historical volatility, Wienerberger AG is 1.33 times less risky than Schoeller Bleckmann. The stock trades about -0.08 of its potential returns per unit of risk. The Schoeller Bleckmann Oilfield Equipment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,865 in Schoeller Bleckmann Oilfield Equipment on August 23, 2024 and sell it today you would lose (10.00) from holding Schoeller Bleckmann Oilfield Equipment or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wienerberger AG vs. Schoeller Bleckmann Oilfield E
Performance |
| Timeline |
| Wienerberger AG |
| Schoeller Bleckmann |
Wienerberger and Schoeller Bleckmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and Schoeller Bleckmann
The main advantage of trading using opposite Wienerberger and Schoeller Bleckmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger position performs unexpectedly, Schoeller Bleckmann 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 Schoeller Bleckmann will offset losses from the drop in Schoeller Bleckmann's long position.| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz AG |
| Schoeller Bleckmann vs. Voestalpine AG | Schoeller Bleckmann vs. Andritz AG | Schoeller Bleckmann vs. Wienerberger AG | Schoeller Bleckmann 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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