Correlation Between CA Immobilien and Raiffeisen Bank

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

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

Diversification Opportunities for CA Immobilien and Raiffeisen Bank

-0.21

Correlation Coefficient

CA Immobilien  Raiffeisen Bank

Very good diversification

The 3 months correlation between CAI and Raiffeisen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CA Immobilien Anlagen 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 CA Immobilien 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 CA Immobilien Anlagen 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 CA Immobilien i.e., CA Immobilien and Raiffeisen Bank go up and down completely randomly.

Pair Corralation between CA Immobilien and Raiffeisen Bank

Assuming the 90 days trading horizon CA Immobilien Anlagen is expected to under-perform the Raiffeisen Bank. In addition to that, CA Immobilien is 1.46 times more volatile than Raiffeisen Bank International. It trades about -0.06 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.16 per unit of volatility. If you would invest  1,710  in Raiffeisen Bank International on September 14, 2024 and sell it today you would earn a total of  338.00  from holding Raiffeisen Bank International or generate 19.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CA Immobilien Anlagen  vs.  Raiffeisen Bank International

CA Immobilien Anlagen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CA Immobilien Anlagen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Raiffeisen Bank Inte

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raiffeisen Bank International are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Raiffeisen Bank demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CA Immobilien and Raiffeisen Bank

The main advantage of trading using opposite CA Immobilien and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CA Immobilien 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 CA Immobilien Anlagen 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.