Correlation Between Fillamentum and Raiffeisen Bank

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

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

Diversification Opportunities for Fillamentum and Raiffeisen Bank

-0.54

Correlation Coefficient

Fillamentum  Raiffeisen Bank

Excellent diversification

The 3 months correlation between Fillamentum and Raiffeisen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fillamentum as 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 Fillamentum 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 Fillamentum as 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 Fillamentum i.e., Fillamentum and Raiffeisen Bank go up and down completely randomly.

Pair Corralation between Fillamentum and Raiffeisen Bank

Assuming the 90 days trading horizon Fillamentum as is expected to under-perform the Raiffeisen Bank. In addition to that, Fillamentum is 4.99 times more volatile than Raiffeisen Bank International. It trades about -0.12 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.14 per unit of volatility. If you would invest  42,530  in Raiffeisen Bank International on September 13, 2024 and sell it today you would earn a total of  8,170  from holding Raiffeisen Bank International or generate 19.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fillamentum as  vs.  Raiffeisen Bank International

Fillamentum as

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fillamentum as has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Raiffeisen Bank Inte

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raiffeisen Bank International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Raiffeisen Bank reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fillamentum and Raiffeisen Bank

The main advantage of trading using opposite Fillamentum and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fillamentum 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 Fillamentum as 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.