Correlation Between Bank Fr and Raiffeisen Bank

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

By analyzing existing cross correlation between Bank Fr Tirol and Raiffeisen Bank International, you can compare the effects of market volatilities on Bank Fr and Raiffeisen 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 Bank Fr with a short position of Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Fr and Raiffeisen Bank.

Diversification Opportunities for Bank Fr and Raiffeisen Bank

0.0

Correlation Coefficient

Bank Fr  Raiffeisen Bank

Pay attention - limited upside

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

Pair Corralation between Bank Fr and Raiffeisen Bank

If you would invest  1,799  in Raiffeisen Bank International on September 5, 2024 and sell it today you would earn a total of  54.00  from holding Raiffeisen Bank International or generate 3.0% return on investment over 90 days.

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

Bank Fr Tirol  vs.  Raiffeisen Bank International

Bank Fr Tirol

Risk-Adjusted Performance

0 of 100

Very Weak

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

Raiffeisen Bank Inte

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Raiffeisen Bank International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Raiffeisen 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 Bank Fr and Raiffeisen Bank

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

The idea behind Bank Fr Tirol and Raiffeisen Bank International 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.