Correlation Between Addiko Bank and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Addiko Bank 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 Addiko Bank and AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addiko Bank AG and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Addiko Bank 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 Addiko Bank with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addiko Bank and AGRANA Beteiligungs.
Diversification Opportunities for Addiko Bank and AGRANA Beteiligungs
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Addiko and AGRANA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Addiko Bank AG and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs and Addiko Bank 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 Addiko Bank AG 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 Addiko Bank i.e., Addiko Bank and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Addiko Bank and AGRANA Beteiligungs
Assuming the 90 days trading horizon Addiko Bank AG is expected to under-perform the AGRANA Beteiligungs. But the stock apears to be less risky and, when comparing its historical volatility, Addiko Bank AG is 1.03 times less risky than AGRANA Beteiligungs. The stock trades about -0.19 of its potential returns per unit of risk. The AGRANA Beteiligungs Aktiengesellschaft is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,060 in AGRANA Beteiligungs Aktiengesellschaft on November 4, 2024 and sell it today you would earn a total of 20.00 from holding AGRANA Beteiligungs Aktiengesellschaft or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Addiko Bank AG vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| Addiko Bank AG |
| AGRANA Beteiligungs |
Addiko Bank and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addiko Bank and AGRANA Beteiligungs
The main advantage of trading using opposite Addiko Bank and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addiko Bank 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.| Addiko Bank vs. Oberbank AG | Addiko Bank vs. AMAG Austria Metall | Addiko Bank vs. Vienna Insurance Group | Addiko Bank vs. CNH Industrial NV |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |