Correlation Between Raiffeisen Bank and Cez AS
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Cez AS 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 Raiffeisen Bank and Cez AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raiffeisen Bank International and Cez AS, you can compare the effects of market volatilities on Raiffeisen Bank and Cez AS 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 Raiffeisen Bank with a short position of Cez AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Cez AS.
Diversification Opportunities for Raiffeisen Bank and Cez AS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Raiffeisen and Cez is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Cez AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cez AS and Raiffeisen 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 Raiffeisen Bank International are associated (or correlated) with Cez AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cez AS has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Cez AS go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Cez AS
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 2.76 times more return on investment than Cez AS. However, Raiffeisen Bank is 2.76 times more volatile than Cez AS. It trades about 0.15 of its potential returns per unit of risk. Cez AS is currently generating about 0.22 per unit of risk. If you would invest 49,520 in Raiffeisen Bank International on December 30, 2024 and sell it today you would earn a total of 17,080 from holding Raiffeisen Bank International or generate 34.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Raiffeisen Bank International vs. Cez AS
Performance |
Timeline |
Raiffeisen Bank Inte |
Cez AS |
Raiffeisen Bank and Cez AS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Raiffeisen Bank and Cez AS
The main advantage of trading using opposite Raiffeisen Bank and Cez AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank position performs unexpectedly, Cez AS 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 Cez AS will offset losses from the drop in Cez AS's long position.Raiffeisen Bank vs. Vienna Insurance Group | Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. JT ARCH INVESTMENTS | Raiffeisen Bank vs. Erste Group Bank |
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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 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.
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