Correlation Between ERSTE GP and W R

Can any of the company-specific risk be diversified away by investing in both ERSTE GP and W R 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 GP and W R into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ERSTE GP BNK and W R Berkley, you can compare the effects of market volatilities on ERSTE GP and W R 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 GP with a short position of W R. Check out your portfolio center. Please also check ongoing floating volatility patterns of ERSTE GP and W R.

Diversification Opportunities for ERSTE GP and W R

-0.09

Correlation Coefficient

ERSTE GP  W R

Good diversification

The 3 months correlation between ERSTE and WR1 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ERSTE GP BNK and W R Berkley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on W R Berkley and ERSTE GP 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 GP BNK are associated (or correlated) with W R. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of W R Berkley has no effect on the direction of ERSTE GP i.e., ERSTE GP and W R go up and down completely randomly.

Pair Corralation between ERSTE GP and W R

Assuming the 90 days trading horizon ERSTE GP BNK is expected to generate 1.44 times more return on investment than W R. However, ERSTE GP is 1.44 times more volatile than W R Berkley. It trades about 0.22 of its potential returns per unit of risk. W R Berkley is currently generating about 0.01 per unit of risk. If you would invest  2,908  in ERSTE GP BNK on April 21, 2025 and sell it today you would earn a total of  872.00  from holding ERSTE GP BNK or generate 29.99% return on investment over 90 days.

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

ERSTE GP BNK  vs.  W R Berkley

ERSTE GP BNK

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ERSTE GP BNK are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ERSTE GP reported solid returns over the last few months and may actually be approaching a breakup point.

W R Berkley

Risk-Adjusted Performance

Very Weak

Over the last 90 days W R Berkley has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, W R is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ERSTE GP and W R

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

The idea behind ERSTE GP BNK and W R Berkley 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.