Correlation Between Volksbank Vorarlberg and Oberbank

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

By analyzing existing cross correlation between Volksbank Vorarlberg E and Oberbank AG, you can compare the effects of market volatilities on Volksbank Vorarlberg and Oberbank 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 Volksbank Vorarlberg with a short position of Oberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volksbank Vorarlberg and Oberbank.

Diversification Opportunities for Volksbank Vorarlberg and Oberbank

0.0

Correlation Coefficient

Volksbank Vorarlberg  Oberbank

Pay attention - limited upside

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

Pair Corralation between Volksbank Vorarlberg and Oberbank

If you would invest  7,000  in Oberbank AG on September 5, 2024 and sell it today you would earn a total of  60.00  from holding Oberbank AG or generate 0.86% return on investment over 90 days.

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

Volksbank Vorarlberg E  vs.  Oberbank AG

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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

Oberbank AG

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oberbank AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Oberbank is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Volksbank Vorarlberg and Oberbank

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

The idea behind Volksbank Vorarlberg E and Oberbank AG 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.