Correlation Between Wienerberger and Stadlauer Malzfabrik
Can any of the company-specific risk be diversified away by investing in both Wienerberger and Stadlauer Malzfabrik 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 Stadlauer Malzfabrik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and Stadlauer Malzfabrik Aktiengesellschaft, you can compare the effects of market volatilities on Wienerberger and Stadlauer Malzfabrik 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 Stadlauer Malzfabrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and Stadlauer Malzfabrik.
Diversification Opportunities for Wienerberger and Stadlauer Malzfabrik
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wienerberger and Stadlauer is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and Stadlauer Malzfabrik Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadlauer Malzfabrik 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 Stadlauer Malzfabrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadlauer Malzfabrik has no effect on the direction of Wienerberger i.e., Wienerberger and Stadlauer Malzfabrik go up and down completely randomly.
Pair Corralation between Wienerberger and Stadlauer Malzfabrik
Assuming the 90 days trading horizon Wienerberger AG is expected to generate 1.95 times more return on investment than Stadlauer Malzfabrik. However, Wienerberger is 1.95 times more volatile than Stadlauer Malzfabrik Aktiengesellschaft. It trades about -0.08 of its potential returns per unit of risk. Stadlauer Malzfabrik Aktiengesellschaft is currently generating about -0.21 per unit of risk. If you would invest 2,788 in Wienerberger AG on August 30, 2024 and sell it today you would lose (112.00) from holding Wienerberger AG or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wienerberger AG vs. Stadlauer Malzfabrik Aktienges
Performance |
| Timeline |
| Wienerberger AG |
| Stadlauer Malzfabrik |
Wienerberger and Stadlauer Malzfabrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and Stadlauer Malzfabrik
The main advantage of trading using opposite Wienerberger and Stadlauer Malzfabrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger position performs unexpectedly, Stadlauer Malzfabrik 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 Stadlauer Malzfabrik will offset losses from the drop in Stadlauer Malzfabrik's long position.| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz AG |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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