Correlation Between Raiffeisen Bank and Volksbank Vorarlberg

Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank and Volksbank Vorarlberg 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 Volksbank Vorarlberg 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 Volksbank Vorarlberg E, you can compare the effects of market volatilities on Raiffeisen Bank and Volksbank Vorarlberg 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 Volksbank Vorarlberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Volksbank Vorarlberg.

Diversification Opportunities for Raiffeisen Bank and Volksbank Vorarlberg

0.0

Correlation Coefficient

Raiffeisen Bank  Volksbank Vorarlberg

Pay attention - limited upside

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

Pair Corralation between Raiffeisen Bank and Volksbank Vorarlberg

If you would invest  1,673  in Raiffeisen Bank International on September 12, 2024 and sell it today you would earn a total of  353.00  from holding Raiffeisen Bank International or generate 21.1% return on investment over 90 days.

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

Raiffeisen Bank International  vs.  Volksbank Vorarlberg E

Raiffeisen Bank Inte

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raiffeisen Bank International are ranked lower than 13 (%) 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.

Volksbank Vorarlberg

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Raiffeisen Bank and Volksbank Vorarlberg

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

The idea behind Raiffeisen Bank International and Volksbank Vorarlberg E 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.