Correlation Between OMV Aktiengesellscha and Lenzing Aktiengesellscha

Can any of the company-specific risk be diversified away by investing in both OMV Aktiengesellscha and Lenzing 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 OMV Aktiengesellscha and Lenzing Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OMV Aktiengesellschaft and Lenzing Aktiengesellschaft, you can compare the effects of market volatilities on OMV Aktiengesellscha and Lenzing 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 OMV Aktiengesellscha with a short position of Lenzing Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Lenzing Aktiengesellscha.

Diversification Opportunities for OMV Aktiengesellscha and Lenzing Aktiengesellscha

0.0

Correlation Coefficient

OMV Aktiengesellscha  Lenzing Aktiengesellscha

Pay attention - limited upside

The 3 months correlation between OMV and Lenzing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Lenzing Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenzing Aktiengesellscha and OMV Aktiengesellscha 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 OMV Aktiengesellschaft are associated (or correlated) with Lenzing Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenzing Aktiengesellscha has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Lenzing Aktiengesellscha go up and down completely randomly.

Pair Corralation between OMV Aktiengesellscha and Lenzing Aktiengesellscha

If you would invest  3,045  in Lenzing Aktiengesellschaft on March 3, 2024 and sell it today you would earn a total of  435.00  from holding Lenzing Aktiengesellschaft or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

OMV Aktiengesellschaft  vs.  Lenzing Aktiengesellschaft

OMV Aktiengesellschaft

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days OMV Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, OMV Aktiengesellscha is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Lenzing Aktiengesellscha

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lenzing Aktiengesellschaft are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Lenzing Aktiengesellscha demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OMV Aktiengesellscha and Lenzing Aktiengesellscha

The main advantage of trading using opposite OMV Aktiengesellscha and Lenzing Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV Aktiengesellscha position performs unexpectedly, Lenzing 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 Lenzing Aktiengesellscha will offset losses from the drop in Lenzing Aktiengesellscha's long position.

The idea behind OMV Aktiengesellschaft and Lenzing Aktiengesellschaft pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.