Correlation Between CA Immobilien and Voestalpine
Can any of the company-specific risk be diversified away by investing in both CA Immobilien and Voestalpine 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 Voestalpine 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 Voestalpine AG, you can compare the effects of market volatilities on CA Immobilien and Voestalpine 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 Voestalpine. Check out your portfolio center. Please also check ongoing floating volatility patterns of CA Immobilien and Voestalpine.
Diversification Opportunities for CA Immobilien and Voestalpine
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CAI and Voestalpine is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CA Immobilien Anlagen and Voestalpine AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voestalpine AG 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 Voestalpine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voestalpine AG has no effect on the direction of CA Immobilien i.e., CA Immobilien and Voestalpine go up and down completely randomly.
Pair Corralation between CA Immobilien and Voestalpine
Assuming the 90 days trading horizon CA Immobilien Anlagen is expected to under-perform the Voestalpine. But the stock apears to be less risky and, when comparing its historical volatility, CA Immobilien Anlagen is 1.67 times less risky than Voestalpine. The stock trades about -0.03 of its potential returns per unit of risk. The Voestalpine AG is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,833 in Voestalpine AG on December 30, 2024 and sell it today you would earn a total of 499.00 from holding Voestalpine AG or generate 27.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CA Immobilien Anlagen vs. Voestalpine AG
Performance |
Timeline |
CA Immobilien Anlagen |
Voestalpine AG |
CA Immobilien and Voestalpine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CA Immobilien and Voestalpine
The main advantage of trading using opposite CA Immobilien and Voestalpine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CA Immobilien position performs unexpectedly, Voestalpine 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 Voestalpine will offset losses from the drop in Voestalpine's long position.CA Immobilien vs. IMMOFINANZ AG | CA Immobilien vs. Wienerberger AG | CA Immobilien vs. Vienna Insurance Group | CA Immobilien vs. Oesterr Post AG |
Voestalpine vs. OMV Aktiengesellschaft | Voestalpine vs. Raiffeisen Bank International | Voestalpine vs. Andritz AG | Voestalpine vs. VERBUND AG |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |