Correlation Between Raiffeisen Bank and IMMOFINANZ

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

Diversification Opportunities for Raiffeisen Bank and IMMOFINANZ

-0.44

Correlation Coefficient

Raiffeisen Bank  IMMOFINANZ

Very good diversification

The 3 months correlation between Raiffeisen and IMMOFINANZ is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ AG 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 IMMOFINANZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMMOFINANZ AG has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and IMMOFINANZ go up and down completely randomly.

Pair Corralation between Raiffeisen Bank and IMMOFINANZ

Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 0.6 times more return on investment than IMMOFINANZ. However, Raiffeisen Bank International is 1.65 times less risky than IMMOFINANZ. It trades about 0.03 of its potential returns per unit of risk. IMMOFINANZ AG is currently generating about -0.23 per unit of risk. If you would invest  1,799  in Raiffeisen Bank International on September 5, 2024 and sell it today you would earn a total of  54.00  from holding Raiffeisen Bank International or generate 3.0% return on investment over 90 days.

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

Raiffeisen Bank International  vs.  IMMOFINANZ AG

Raiffeisen Bank Inte

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Raiffeisen Bank International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Raiffeisen Bank is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

IMMOFINANZ AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IMMOFINANZ AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Raiffeisen Bank and IMMOFINANZ

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

The idea behind Raiffeisen Bank International and IMMOFINANZ 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..