Correlation Between Austrian Traded and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Austrian Traded and AGRANA Beteiligungs 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 Austrian Traded and AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austrian Traded Index and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Austrian Traded and AGRANA Beteiligungs 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 Austrian Traded with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and AGRANA Beteiligungs.
Diversification Opportunities for Austrian Traded and AGRANA Beteiligungs
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austrian and AGRANA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs and Austrian Traded 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 Austrian Traded Index are associated (or correlated) with AGRANA Beteiligungs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRANA Beteiligungs has no effect on the direction of Austrian Traded i.e., Austrian Traded and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Austrian Traded and AGRANA Beteiligungs
Assuming the 90 days trading horizon Austrian Traded Index is expected to generate 0.61 times more return on investment than AGRANA Beteiligungs. However, Austrian Traded Index is 1.64 times less risky than AGRANA Beteiligungs. It trades about 0.08 of its potential returns per unit of risk. AGRANA Beteiligungs Aktiengesellschaft is currently generating about -0.08 per unit of risk. If you would invest 353,713 in Austrian Traded Index on January 31, 2024 and sell it today you would earn a total of 3,045 from holding Austrian Traded Index or generate 0.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Austrian Traded Index vs. AGRANA Beteiligungs Aktiengese
Performance |
Timeline |
Austrian Traded and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
AGRANA Beteiligungs Aktiengesellschaft
Pair trading matchups for AGRANA Beteiligungs
Pair Trading with Austrian Traded and AGRANA Beteiligungs
The main advantage of trading using opposite Austrian Traded and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded position performs unexpectedly, AGRANA Beteiligungs 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 AGRANA Beteiligungs will offset losses from the drop in AGRANA Beteiligungs' long position.Austrian Traded vs. Addiko Bank AG | Austrian Traded vs. Wiener Privatbank SE | Austrian Traded vs. Universal Music Group | Austrian Traded vs. Vienna Insurance Group |
AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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