Correlation Between Wienerberger and S IMMO
Can any of the company-specific risk be diversified away by investing in both Wienerberger and S IMMO 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 S IMMO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and S IMMO AG, you can compare the effects of market volatilities on Wienerberger and S IMMO 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 S IMMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and S IMMO.
Diversification Opportunities for Wienerberger and S IMMO
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wienerberger and SPI is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and S IMMO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S IMMO AG 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 S IMMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S IMMO AG has no effect on the direction of Wienerberger i.e., Wienerberger and S IMMO go up and down completely randomly.
Pair Corralation between Wienerberger and S IMMO
Assuming the 90 days trading horizon Wienerberger AG is expected to under-perform the S IMMO. In addition to that, Wienerberger is 3.68 times more volatile than S IMMO AG. It trades about -0.09 of its total potential returns per unit of risk. S IMMO AG is currently generating about 0.0 per unit of volatility. If you would invest 2,210 in S IMMO AG on August 26, 2024 and sell it today you would earn a total of 0.00 from holding S IMMO AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wienerberger AG vs. S IMMO AG
Performance |
| Timeline |
| Wienerberger AG |
| S IMMO AG |
Wienerberger and S IMMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and S IMMO
The main advantage of trading using opposite Wienerberger and S IMMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger position performs unexpectedly, S IMMO 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 S IMMO will offset losses from the drop in S IMMO's long position.| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz AG |
| S IMMO vs. AMAG Austria Metall | S IMMO vs. Vienna Insurance Group | S IMMO vs. Oberbank AG | S IMMO vs. Addiko Bank 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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