Correlation Between Wiener Privatbank and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and Raiffeisen 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 Raiffeisen 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 Raiffeisen Bank International, you can compare the effects of market volatilities on Wiener Privatbank and Raiffeisen 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 Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and Raiffeisen Bank.
Diversification Opportunities for Wiener Privatbank and Raiffeisen Bank
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiener and Raiffeisen is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte 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 Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between Wiener Privatbank and Raiffeisen Bank
Assuming the 90 days trading horizon Wiener Privatbank is expected to generate 2.61 times less return on investment than Raiffeisen Bank. In addition to that, Wiener Privatbank is 1.1 times more volatile than Raiffeisen Bank International. It trades about 0.14 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.41 per unit of volatility. If you would invest 1,911 in Raiffeisen Bank International on November 4, 2024 and sell it today you would earn a total of 285.00 from holding Raiffeisen Bank International or generate 14.91% 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. Raiffeisen Bank International
Performance |
| Timeline |
| Wiener Privatbank |
| Raiffeisen Bank Inte |
Wiener Privatbank and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and Raiffeisen Bank
The main advantage of trading using opposite Wiener Privatbank and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, Raiffeisen 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen 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 |
| Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. BKS Bank AG | Raiffeisen Bank vs. Vienna 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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