Correlation Between Warimpex Finanz and Erste Group
Can any of the company-specific risk be diversified away by investing in both Warimpex Finanz and Erste 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 Warimpex Finanz and Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Warimpex Finanz und and Erste Group Bank, you can compare the effects of market volatilities on Warimpex Finanz and Erste 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 Warimpex Finanz with a short position of Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warimpex Finanz and Erste Group.
Diversification Opportunities for Warimpex Finanz and Erste Group
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Warimpex and Erste is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Warimpex Finanz und and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank and Warimpex Finanz 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 Warimpex Finanz und are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Warimpex Finanz i.e., Warimpex Finanz and Erste Group go up and down completely randomly.
Pair Corralation between Warimpex Finanz and Erste Group
Assuming the 90 days trading horizon Warimpex Finanz is expected to generate 3.66 times less return on investment than Erste Group. In addition to that, Warimpex Finanz is 5.24 times more volatile than Erste Group Bank. It trades about 0.02 of its total potential returns per unit of risk. Erste Group Bank is currently generating about 0.38 per unit of volatility. If you would invest 5,348 in Erste Group Bank on September 18, 2024 and sell it today you would earn a total of 548.00 from holding Erste Group Bank or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Warimpex Finanz und vs. Erste Group Bank
Performance |
| Timeline |
| Warimpex Finanz und |
| Erste Group Bank |
Warimpex Finanz and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Warimpex Finanz and Erste Group
The main advantage of trading using opposite Warimpex Finanz and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Warimpex Finanz position performs unexpectedly, Erste 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 Erste Group will offset losses from the drop in Erste Group's long position.| Warimpex Finanz vs. IMMOFINANZ AG | Warimpex Finanz vs. Polytec Holding AG | Warimpex Finanz vs. Zumtobel Group AG | Warimpex Finanz vs. UNIQA Insurance Group |
| Erste Group vs. Raiffeisen Bank International | Erste Group vs. OMV Aktiengesellschaft | Erste Group vs. Voestalpine AG | Erste Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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