Correlation Between Wiener Privatbank and BKS Bank
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and BKS Bank 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 BKS Bank 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 BKS Bank AG, you can compare the effects of market volatilities on Wiener Privatbank and BKS Bank 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 BKS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and BKS Bank.
Diversification Opportunities for Wiener Privatbank and BKS Bank
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiener and BKS is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and BKS Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKS Bank 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 BKS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKS Bank AG has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and BKS Bank go up and down completely randomly.
Pair Corralation between Wiener Privatbank and BKS Bank
Assuming the 90 days trading horizon Wiener Privatbank SE is expected to generate 1.08 times more return on investment than BKS Bank. However, Wiener Privatbank is 1.08 times more volatile than BKS Bank AG. It trades about 0.14 of its potential returns per unit of risk. BKS Bank AG is currently generating about -0.12 per unit of risk. If you would invest 665.00 in Wiener Privatbank SE on November 4, 2024 and sell it today you would earn a total of 35.00 from holding Wiener Privatbank SE or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wiener Privatbank SE vs. BKS Bank AG
Performance |
| Timeline |
| Wiener Privatbank |
| BKS Bank AG |
Wiener Privatbank and BKS Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and BKS Bank
The main advantage of trading using opposite Wiener Privatbank and BKS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, BKS Bank 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 BKS Bank will offset losses from the drop in BKS Bank's long position.| Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. CNH Industrial NV | Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. Universal Music Group |
| BKS Bank vs. Oberbank AG | BKS Bank vs. Raiffeisen Bank International | BKS Bank vs. Wiener Privatbank SE | BKS Bank vs. Erste Group Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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