Correlation Between Wiener Privatbank and IMMOFINANZ
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and IMMOFINANZ 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 IMMOFINANZ 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 IMMOFINANZ AG, you can compare the effects of market volatilities on Wiener Privatbank and IMMOFINANZ 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 IMMOFINANZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and IMMOFINANZ.
Diversification Opportunities for Wiener Privatbank and IMMOFINANZ
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiener and IMMOFINANZ is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ 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 IMMOFINANZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMMOFINANZ AG has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and IMMOFINANZ go up and down completely randomly.
Pair Corralation between Wiener Privatbank and IMMOFINANZ
Assuming the 90 days trading horizon Wiener Privatbank SE is expected to generate 0.76 times more return on investment than IMMOFINANZ. However, Wiener Privatbank SE is 1.32 times less risky than IMMOFINANZ. It trades about 0.06 of its potential returns per unit of risk. IMMOFINANZ AG is currently generating about -0.03 per unit of risk. If you would invest 610.00 in Wiener Privatbank SE on August 25, 2024 and sell it today you would earn a total of 155.00 from holding Wiener Privatbank SE or generate 25.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Wiener Privatbank SE vs. IMMOFINANZ AG
Performance |
| Timeline |
| Wiener Privatbank |
| IMMOFINANZ AG |
Wiener Privatbank and IMMOFINANZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and IMMOFINANZ
The main advantage of trading using opposite Wiener Privatbank and IMMOFINANZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, IMMOFINANZ 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 IMMOFINANZ will offset losses from the drop in IMMOFINANZ's long position.| Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. BAWAG Group AG | Wiener Privatbank vs. Addiko Bank AG |
| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ vs. Raiffeisen Bank International | IMMOFINANZ vs. UNIQA Insurance Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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