Correlation Between OMV Aktiengesellscha and Schoeller Bleckmann

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

By analyzing existing cross correlation between OMV Aktiengesellschaft and Schoeller Bleckmann Oilfield Equipment, you can compare the effects of market volatilities on OMV Aktiengesellscha and Schoeller Bleckmann 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 OMV Aktiengesellscha with a short position of Schoeller Bleckmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Schoeller Bleckmann.

Diversification Opportunities for OMV Aktiengesellscha and Schoeller Bleckmann

-0.03

Correlation Coefficient

OMV Aktiengesellscha  Schoeller Bleckmann

Good diversification

The 3 months correlation between OMV and Schoeller is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Schoeller Bleckmann Oilfield E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schoeller Bleckmann and OMV Aktiengesellscha 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 OMV Aktiengesellschaft are associated (or correlated) with Schoeller Bleckmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schoeller Bleckmann has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Schoeller Bleckmann go up and down completely randomly.

Pair Corralation between OMV Aktiengesellscha and Schoeller Bleckmann

Assuming the 90 days trading horizon OMV Aktiengesellschaft is expected to generate 0.58 times more return on investment than Schoeller Bleckmann. However, OMV Aktiengesellschaft is 1.72 times less risky than Schoeller Bleckmann. It trades about 0.05 of its potential returns per unit of risk. Schoeller Bleckmann Oilfield Equipment is currently generating about 0.02 per unit of risk. If you would invest  3,656  in OMV Aktiengesellschaft on September 13, 2024 and sell it today you would earn a total of  124.00  from holding OMV Aktiengesellschaft or generate 3.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

OMV Aktiengesellschaft  vs.  Schoeller Bleckmann Oilfield E

OMV Aktiengesellschaft

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OMV Aktiengesellschaft are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, OMV Aktiengesellscha is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Schoeller Bleckmann

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Schoeller Bleckmann Oilfield Equipment are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Schoeller Bleckmann is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with OMV Aktiengesellscha and Schoeller Bleckmann

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

The idea behind OMV Aktiengesellschaft and Schoeller Bleckmann Oilfield Equipment 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.