Correlation Between OMV Aktiengesellscha and Oesterr Post

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

By analyzing existing cross correlation between OMV Aktiengesellschaft and Oesterr Post AG, you can compare the effects of market volatilities on OMV Aktiengesellscha and Oesterr Post 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 Oesterr Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV Aktiengesellscha and Oesterr Post.

Diversification Opportunities for OMV Aktiengesellscha and Oesterr Post

0.48

Correlation Coefficient

OMV Aktiengesellscha  Oesterr Post

Very weak diversification

The 3 months correlation between OMV and Oesterr is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OMV Aktiengesellschaft and Oesterr Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oesterr Post AG 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 Oesterr Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oesterr Post AG has no effect on the direction of OMV Aktiengesellscha i.e., OMV Aktiengesellscha and Oesterr Post go up and down completely randomly.

Pair Corralation between OMV Aktiengesellscha and Oesterr Post

Assuming the 90 days trading horizon OMV Aktiengesellscha is expected to generate 2.53 times less return on investment than Oesterr Post. In addition to that, OMV Aktiengesellscha is 1.88 times more volatile than Oesterr Post AG. It trades about 0.02 of its total potential returns per unit of risk. Oesterr Post AG is currently generating about 0.09 per unit of volatility. If you would invest  2,980  in Oesterr Post AG on May 7, 2025 and sell it today you would earn a total of  130.00  from holding Oesterr Post AG or generate 4.36% return on investment over 90 days.

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

OMV Aktiengesellschaft  vs.  Oesterr Post AG

OMV Aktiengesellschaft

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OMV Aktiengesellschaft are ranked lower than 1 (%) 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.

Oesterr Post AG

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Oesterr Post AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Oesterr Post 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 Oesterr Post

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

The idea behind OMV Aktiengesellschaft and Oesterr Post 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.