Correlation Between Oberbank and CNH Industrial
Can any of the company-specific risk be diversified away by investing in both Oberbank and CNH Industrial 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 Oberbank and CNH Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberbank AG and CNH Industrial NV, you can compare the effects of market volatilities on Oberbank and CNH Industrial 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 Oberbank with a short position of CNH Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberbank and CNH Industrial.
Diversification Opportunities for Oberbank and CNH Industrial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oberbank and CNH is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oberbank AG and CNH Industrial NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNH Industrial NV and Oberbank 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 Oberbank AG are associated (or correlated) with CNH Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNH Industrial NV has no effect on the direction of Oberbank i.e., Oberbank and CNH Industrial go up and down completely randomly.
Pair Corralation between Oberbank and CNH Industrial
Assuming the 90 days trading horizon Oberbank AG is expected to generate 0.38 times more return on investment than CNH Industrial. However, Oberbank AG is 2.62 times less risky than CNH Industrial. It trades about 0.0 of its potential returns per unit of risk. CNH Industrial NV is currently generating about -0.11 per unit of risk. If you would invest 6,940 in Oberbank AG on March 7, 2024 and sell it today you would earn a total of 0.00 from holding Oberbank AG or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oberbank AG vs. CNH Industrial NV
Performance |
Timeline |
Oberbank AG |
CNH Industrial NV |
Oberbank and CNH Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oberbank and CNH Industrial
The main advantage of trading using opposite Oberbank and CNH Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberbank position performs unexpectedly, CNH Industrial 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 CNH Industrial will offset losses from the drop in CNH Industrial's long position.Oberbank vs. AT S Austria | Oberbank vs. BAWAG Group AG | Oberbank vs. Semperit Aktiengesellschaft Holding | Oberbank vs. Oesterr Post AG |
CNH Industrial vs. AT S Austria | CNH Industrial vs. BAWAG Group AG | CNH Industrial vs. Semperit Aktiengesellschaft Holding | CNH Industrial vs. Oesterr Post AG |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |