Correlation Between BKS Bank and Oesterreichische

Can any of the company-specific risk be diversified away by investing in both BKS Bank and Oesterreichische 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 Oesterreichische 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 Oesterreichische Volksbanken AG, you can compare the effects of market volatilities on BKS Bank and Oesterreichische 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 Oesterreichische. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and Oesterreichische.

Diversification Opportunities for BKS Bank and Oesterreichische

0.0

Correlation Coefficient

BKS Bank  Oesterreichische

Pay attention - limited upside

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

Pair Corralation between BKS Bank and Oesterreichische

If you would invest  1,570  in BKS Bank AG on December 2, 2024 and sell it today you would earn a total of  0.00  from holding BKS Bank AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BKS Bank AG  vs.  Oesterreichische Volksbanken A

BKS Bank AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BKS Bank AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, BKS Bank may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Oesterreichische Vol

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oesterreichische Volksbanken AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Oesterreichische is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BKS Bank and Oesterreichische

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

The idea behind BKS Bank AG and Oesterreichische Volksbanken 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.