Correlation Between Oesterreichische and Wiener Privatbank

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

By analyzing existing cross correlation between Oesterreichische Volksbanken AG and Wiener Privatbank SE, you can compare the effects of market volatilities on Oesterreichische and Wiener Privatbank 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 Oesterreichische with a short position of Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oesterreichische and Wiener Privatbank.

Diversification Opportunities for Oesterreichische and Wiener Privatbank

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Correlation Coefficient

Oesterreichische  Wiener Privatbank

Pay attention - limited upside

The 3 months correlation between Oesterreichische and Wiener is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oesterreichische Volksbanken A and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank and Oesterreichische 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 Oesterreichische Volksbanken AG are associated (or correlated) with Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of Oesterreichische i.e., Oesterreichische and Wiener Privatbank go up and down completely randomly.

Pair Corralation between Oesterreichische and Wiener Privatbank

If you would invest (100.00) in Oesterreichische Volksbanken AG on September 12, 2024 and sell it today you would earn a total of  100.00  from holding Oesterreichische Volksbanken AG or generate -100.0% return on investment over 90 days.

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

Oesterreichische Volksbanken A  vs.  Wiener Privatbank SE

Oesterreichische Vol

Risk-Adjusted Performance

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Very Weak

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

Wiener Privatbank

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wiener Privatbank SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, Wiener Privatbank is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Oesterreichische and Wiener Privatbank

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

The idea behind Oesterreichische Volksbanken AG and Wiener Privatbank SE 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.