Correlation Between Wiener Privatbank and KTM Industries

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

Diversification Opportunities for Wiener Privatbank and KTM Industries

0.0

Correlation Coefficient

Wiener Privatbank  KTM Industries

Pay attention - limited upside

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

Pair Corralation between Wiener Privatbank and KTM Industries

If you would invest (100.00) in KTM Industries AG on September 4, 2024 and sell it today you would earn a total of  100.00  from holding KTM Industries 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

Wiener Privatbank SE  vs.  KTM Industries AG

Wiener Privatbank

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wiener Privatbank SE are ranked lower than 10 (%) 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.

KTM Industries AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTM Industries AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, KTM Industries is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Wiener Privatbank and KTM Industries

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

The idea behind Wiener Privatbank SE and KTM Industries 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..