Correlation Between Wiener Privatbank and AMAG Austria
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and AMAG Austria 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 Wiener Privatbank and AMAG Austria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiener Privatbank SE and AMAG Austria Metall, you can compare the effects of market volatilities on Wiener Privatbank and AMAG Austria 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 Wiener Privatbank with a short position of AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and AMAG Austria.
Diversification Opportunities for Wiener Privatbank and AMAG Austria
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wiener and AMAG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall and Wiener Privatbank 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 Wiener Privatbank SE are associated (or correlated) with AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and AMAG Austria go up and down completely randomly.
Pair Corralation between Wiener Privatbank and AMAG Austria
If you would invest 765.00 in Wiener Privatbank SE on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Wiener Privatbank SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wiener Privatbank SE vs. AMAG Austria Metall
Performance |
| Timeline |
| Wiener Privatbank |
| AMAG Austria Metall |
Wiener Privatbank and AMAG Austria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and AMAG Austria
The main advantage of trading using opposite Wiener Privatbank and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, AMAG Austria 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 AMAG Austria will offset losses from the drop in AMAG Austria's long position.| Wiener Privatbank vs. Universal Music Group | Wiener Privatbank vs. UNIQA Insurance Group | Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. Vienna Insurance Group |
| AMAG Austria vs. Lenzing Aktiengesellschaft | AMAG Austria vs. Voestalpine AG | AMAG Austria vs. EVN AG | AMAG Austria vs. Facc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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