Correlation Between Wiener Privatbank and SW Umwelttechnik
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and SW Umwelttechnik 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 Wiener Privatbank and SW Umwelttechnik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiener Privatbank SE and SW Umwelttechnik Stoiser, you can compare the effects of market volatilities on Wiener Privatbank and SW Umwelttechnik 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 Wiener Privatbank with a short position of SW Umwelttechnik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and SW Umwelttechnik.
Diversification Opportunities for Wiener Privatbank and SW Umwelttechnik
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wiener and SWUT is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and SW Umwelttechnik Stoiser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SW Umwelttechnik Stoiser and Wiener Privatbank 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 Wiener Privatbank SE are associated (or correlated) with SW Umwelttechnik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SW Umwelttechnik Stoiser has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and SW Umwelttechnik go up and down completely randomly.
Pair Corralation between Wiener Privatbank and SW Umwelttechnik
Assuming the 90 days trading horizon Wiener Privatbank SE is expected to generate 1.7 times more return on investment than SW Umwelttechnik. However, Wiener Privatbank is 1.7 times more volatile than SW Umwelttechnik Stoiser. It trades about 0.16 of its potential returns per unit of risk. SW Umwelttechnik Stoiser is currently generating about 0.16 per unit of risk. If you would invest 535.00 in Wiener Privatbank SE on March 7, 2024 and sell it today you would earn a total of 110.00 from holding Wiener Privatbank SE or generate 20.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 36.07% |
Values | Daily Returns |
Wiener Privatbank SE vs. SW Umwelttechnik Stoiser
Performance |
Timeline |
Wiener Privatbank |
SW Umwelttechnik Stoiser |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Wiener Privatbank and SW Umwelttechnik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wiener Privatbank and SW Umwelttechnik
The main advantage of trading using opposite Wiener Privatbank and SW Umwelttechnik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, SW Umwelttechnik 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 SW Umwelttechnik will offset losses from the drop in SW Umwelttechnik's long position.Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. AT S Austria | Wiener Privatbank vs. Semperit Aktiengesellschaft Holding | Wiener Privatbank vs. Oesterr Post AG |
SW Umwelttechnik vs. Voestalpine AG | SW Umwelttechnik vs. OMV Aktiengesellschaft | SW Umwelttechnik vs. UNIQA Insurance Group | SW Umwelttechnik vs. VERBUND 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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