Correlation Between Zumtobel Group and IMMOFINANZ
Can any of the company-specific risk be diversified away by investing in both Zumtobel Group 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 Zumtobel Group and IMMOFINANZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zumtobel Group AG and IMMOFINANZ AG, you can compare the effects of market volatilities on Zumtobel Group 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 Zumtobel Group with a short position of IMMOFINANZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zumtobel Group and IMMOFINANZ.
Diversification Opportunities for Zumtobel Group and IMMOFINANZ
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zumtobel and IMMOFINANZ is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zumtobel Group AG and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ AG and Zumtobel Group 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 Zumtobel Group AG 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 Zumtobel Group i.e., Zumtobel Group and IMMOFINANZ go up and down completely randomly.
Pair Corralation between Zumtobel Group and IMMOFINANZ
Assuming the 90 days trading horizon Zumtobel Group AG is expected to under-perform the IMMOFINANZ. But the stock apears to be less risky and, when comparing its historical volatility, Zumtobel Group AG is 1.13 times less risky than IMMOFINANZ. The stock trades about -0.03 of its potential returns per unit of risk. The IMMOFINANZ AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,266 in IMMOFINANZ AG on August 26, 2024 and sell it today you would earn a total of 262.00 from holding IMMOFINANZ AG or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zumtobel Group AG vs. IMMOFINANZ AG
Performance |
| Timeline |
| Zumtobel Group AG |
| IMMOFINANZ AG |
Zumtobel Group and IMMOFINANZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zumtobel Group and IMMOFINANZ
The main advantage of trading using opposite Zumtobel Group and IMMOFINANZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zumtobel Group 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.| Zumtobel Group vs. Voestalpine AG | Zumtobel Group vs. Andritz AG | Zumtobel Group vs. Wienerberger AG | Zumtobel Group vs. Lenzing Aktiengesellschaft |
| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. S IMMO AG | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |