Correlation Between Wiener Privatbank and Bank Fr

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

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

Diversification Opportunities for Wiener Privatbank and Bank Fr

0.0

Correlation Coefficient

Wiener Privatbank  Bank Fr

Pay attention - limited upside

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

Pair Corralation between Wiener Privatbank and Bank Fr

If you would invest  730.00  in Wiener Privatbank SE on September 5, 2024 and sell it today you would earn a total of  35.00  from holding Wiener Privatbank SE or generate 4.79% return on investment over 90 days.

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

Wiener Privatbank SE  vs.  Bank Fr Tirol

Wiener Privatbank

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wiener Privatbank SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. 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.

Bank Fr Tirol

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Wiener Privatbank and Bank Fr

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

The idea behind Wiener Privatbank SE and Bank Fr Tirol 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 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.