Correlation Between Wiener Privatbank and Fuchs Petrolub
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and Fuchs Petrolub 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 Fuchs Petrolub 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 Fuchs Petrolub SE, you can compare the effects of market volatilities on Wiener Privatbank and Fuchs Petrolub 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 Fuchs Petrolub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and Fuchs Petrolub.
Diversification Opportunities for Wiener Privatbank and Fuchs Petrolub
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wiener and Fuchs is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and Fuchs Petrolub SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuchs Petrolub SE 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 Fuchs Petrolub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuchs Petrolub SE has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and Fuchs Petrolub go up and down completely randomly.
Pair Corralation between Wiener Privatbank and Fuchs Petrolub
If you would invest 4,246 in Fuchs Petrolub SE on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Fuchs Petrolub SE or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wiener Privatbank SE vs. Fuchs Petrolub SE
Performance |
| Timeline |
| Wiener Privatbank |
| Fuchs Petrolub SE |
Wiener Privatbank and Fuchs Petrolub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and Fuchs Petrolub
The main advantage of trading using opposite Wiener Privatbank and Fuchs Petrolub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, Fuchs Petrolub 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 Fuchs Petrolub will offset losses from the drop in Fuchs Petrolub'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 |
| Fuchs Petrolub vs. Wiener Privatbank SE | Fuchs Petrolub vs. BKS Bank AG | Fuchs Petrolub vs. AMAG Austria Metall | Fuchs Petrolub vs. Raiffeisen Bank International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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