Correlation Between Wiener Privatbank and BAWAG Group
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and BAWAG Group 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 BAWAG Group 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 BAWAG Group AG, you can compare the effects of market volatilities on Wiener Privatbank and BAWAG Group 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 BAWAG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and BAWAG Group.
Diversification Opportunities for Wiener Privatbank and BAWAG Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wiener and BAWAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and BAWAG Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAWAG Group AG 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 BAWAG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAWAG Group AG has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and BAWAG Group go up and down completely randomly.
Pair Corralation between Wiener Privatbank and BAWAG Group
If you would invest 7,025 in BAWAG Group AG on August 31, 2024 and sell it today you would earn a total of 410.00 from holding BAWAG Group AG or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wiener Privatbank SE vs. BAWAG Group AG
Performance |
| Timeline |
| Wiener Privatbank |
| BAWAG Group AG |
Wiener Privatbank and BAWAG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and BAWAG Group
The main advantage of trading using opposite Wiener Privatbank and BAWAG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, BAWAG Group 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 BAWAG Group will offset losses from the drop in BAWAG Group's long position.| Wiener Privatbank vs. BKS Bank AG | Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. CNH Industrial NV | Wiener Privatbank vs. Vienna Insurance Group |
| BAWAG Group vs. Erste Group Bank | BAWAG Group vs. Raiffeisen Bank International | BAWAG Group vs. UNIQA Insurance Group | BAWAG Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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