Correlation Between Austriacard Holdings and Vogiatzoglou Systems

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

By analyzing existing cross correlation between Austriacard Holdings AG and Vogiatzoglou Systems SA, you can compare the effects of market volatilities on Austriacard Holdings and Vogiatzoglou Systems 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 Austriacard Holdings with a short position of Vogiatzoglou Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austriacard Holdings and Vogiatzoglou Systems.

Diversification Opportunities for Austriacard Holdings and Vogiatzoglou Systems

0.31

Correlation Coefficient

Austriacard Holdings  Vogiatzoglou Systems

Weak diversification

The 3 months correlation between Austriacard and Vogiatzoglou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Austriacard Holdings AG and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems and Austriacard Holdings 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 Austriacard Holdings AG are associated (or correlated) with Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of Austriacard Holdings i.e., Austriacard Holdings and Vogiatzoglou Systems go up and down completely randomly.

Pair Corralation between Austriacard Holdings and Vogiatzoglou Systems

Assuming the 90 days trading horizon Austriacard Holdings AG is expected to generate 0.48 times more return on investment than Vogiatzoglou Systems. However, Austriacard Holdings AG is 2.08 times less risky than Vogiatzoglou Systems. It trades about 0.05 of its potential returns per unit of risk. Vogiatzoglou Systems SA is currently generating about 0.02 per unit of risk. If you would invest  580.00  in Austriacard Holdings AG on December 28, 2024 and sell it today you would earn a total of  16.00  from holding Austriacard Holdings AG or generate 2.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Austriacard Holdings AG  vs.  Vogiatzoglou Systems SA

Austriacard Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Austriacard Holdings AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Austriacard Holdings is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Vogiatzoglou Systems

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vogiatzoglou Systems SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Vogiatzoglou Systems is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Austriacard Holdings and Vogiatzoglou Systems

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

The idea behind Austriacard Holdings AG and Vogiatzoglou Systems SA 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..