Correlation Between Burgenland Holding and BKS Bank

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

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

Diversification Opportunities for Burgenland Holding and BKS Bank

0.0

Correlation Coefficient

Burgenland Holding  BKS Bank

Pay attention - limited upside

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

Pair Corralation between Burgenland Holding and BKS Bank

If you would invest  1,590  in BKS Bank AG on December 30, 2024 and sell it today you would earn a total of  20.00  from holding BKS Bank AG or generate 1.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Burgenland Holding Aktiengesel  vs.  BKS Bank AG

Burgenland Holding

Risk-Adjusted Performance

Very Weak

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

BKS Bank AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BKS Bank AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, BKS Bank is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Burgenland Holding and BKS Bank

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

The idea behind Burgenland Holding Aktiengesellschaft and BKS Bank AG 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.