Correlation Between Warimpex Finanz and Gurktaler Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Warimpex Finanz and Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellschaft, you can compare the effects of market volatilities on Warimpex Finanz and Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warimpex Finanz and Gurktaler Aktiengesellscha.
Diversification Opportunities for Warimpex Finanz and Gurktaler Aktiengesellscha
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Warimpex and Gurktaler is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Warimpex Finanz und and Gurktaler Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurktaler Aktiengesellscha has no effect on the direction of Warimpex Finanz i.e., Warimpex Finanz and Gurktaler Aktiengesellscha go up and down completely randomly.
Pair Corralation between Warimpex Finanz and Gurktaler Aktiengesellscha
Assuming the 90 days trading horizon Warimpex Finanz is expected to generate 3.55 times less return on investment than Gurktaler Aktiengesellscha. In addition to that, Warimpex Finanz is 1.4 times more volatile than Gurktaler Aktiengesellschaft. It trades about 0.07 of its total potential returns per unit of risk. Gurktaler Aktiengesellschaft is currently generating about 0.33 per unit of volatility. If you would invest 780.00 in Gurktaler Aktiengesellschaft on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Gurktaler Aktiengesellschaft or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Warimpex Finanz und vs. Gurktaler Aktiengesellschaft
Performance |
| Timeline |
| Warimpex Finanz und |
| Gurktaler Aktiengesellscha |
Warimpex Finanz and Gurktaler Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Warimpex Finanz and Gurktaler Aktiengesellscha
The main advantage of trading using opposite Warimpex Finanz and Gurktaler Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Warimpex Finanz position performs unexpectedly, Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha will offset losses from the drop in Gurktaler Aktiengesellscha'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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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