Correlation Between BKS Bank and Oberbank
Can any of the company-specific risk be diversified away by investing in both BKS Bank and Oberbank 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 BKS Bank and Oberbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKS Bank AG and Oberbank AG, you can compare the effects of market volatilities on BKS Bank and Oberbank 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 BKS Bank with a short position of Oberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and Oberbank.
Diversification Opportunities for BKS Bank and Oberbank
Excellent diversification
The 3 months correlation between BKS and Oberbank is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG and Oberbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberbank AG and BKS Bank 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 BKS Bank AG are associated (or correlated) with Oberbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberbank AG has no effect on the direction of BKS Bank i.e., BKS Bank and Oberbank go up and down completely randomly.
Pair Corralation between BKS Bank and Oberbank
Assuming the 90 days trading horizon BKS Bank AG is expected to under-perform the Oberbank. In addition to that, BKS Bank is 5.29 times more volatile than Oberbank AG. It trades about -0.05 of its total potential returns per unit of risk. Oberbank AG is currently generating about 0.0 per unit of volatility. If you would invest 7,000 in Oberbank AG on September 12, 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 Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BKS Bank AG vs. Oberbank AG
Performance |
Timeline |
BKS Bank AG |
Oberbank AG |
BKS Bank and Oberbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BKS Bank and Oberbank
The main advantage of trading using opposite BKS Bank and Oberbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank position performs unexpectedly, Oberbank 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 Oberbank will offset losses from the drop in Oberbank's long position.BKS Bank vs. RATH Aktiengesellschaft | BKS Bank vs. AT S Austria | BKS Bank vs. BAWAG Group AG | BKS Bank vs. Semperit Aktiengesellschaft Holding |
Oberbank vs. RATH Aktiengesellschaft | Oberbank vs. AT S Austria | Oberbank vs. BAWAG Group AG | Oberbank vs. Semperit Aktiengesellschaft Holding |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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