Correlation Between Erste Group and Computer
Can any of the company-specific risk be diversified away by investing in both Erste Group and Computer 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 Erste Group and Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erste Group Bank and Computer And Technologies, you can compare the effects of market volatilities on Erste Group and Computer 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 Erste Group with a short position of Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and Computer.
Diversification Opportunities for Erste Group and Computer
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Erste and Computer is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies and Erste Group 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 Erste Group Bank are associated (or correlated) with Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Erste Group i.e., Erste Group and Computer go up and down completely randomly.
Pair Corralation between Erste Group and Computer
Assuming the 90 days trading horizon Erste Group Bank is expected to generate 0.55 times more return on investment than Computer. However, Erste Group Bank is 1.81 times less risky than Computer. It trades about 0.08 of its potential returns per unit of risk. Computer And Technologies is currently generating about 0.01 per unit of risk. If you would invest 7,630 in Erste Group Bank on July 20, 2025 and sell it today you would earn a total of 575.00 from holding Erste Group Bank or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erste Group Bank vs. Computer And Technologies
Performance |
| Timeline |
| Erste Group Bank |
| Computer And Technologies |
Erste Group and Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and Computer
The main advantage of trading using opposite Erste Group and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer's long position.| Erste Group vs. Melco Resorts Entertainment | Erste Group vs. UNITED RENTALS | Erste Group vs. United Rentals | Erste Group vs. DaChan Food Limited |
| Computer vs. MIRAMAR HOTEL INV | Computer vs. Hyatt Hotels | Computer vs. DALATA HOTEL | Computer vs. Pebblebrook Hotel Trust |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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