Correlation Between AGRANA Beteiligungs and EVN AG
Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and EVN AG 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 AGRANA Beteiligungs and EVN AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRANA Beteiligungs Aktiengesellschaft and EVN AG, you can compare the effects of market volatilities on AGRANA Beteiligungs and EVN AG 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 AGRANA Beteiligungs with a short position of EVN AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and EVN AG.
Diversification Opportunities for AGRANA Beteiligungs and EVN AG
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRANA and EVN is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and EVN AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN AG and AGRANA Beteiligungs 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 AGRANA Beteiligungs Aktiengesellschaft are associated (or correlated) with EVN AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN AG has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and EVN AG go up and down completely randomly.
Pair Corralation between AGRANA Beteiligungs and EVN AG
Assuming the 90 days trading horizon AGRANA Beteiligungs Aktiengesellschaft is expected to generate 1.4 times more return on investment than EVN AG. However, AGRANA Beteiligungs is 1.4 times more volatile than EVN AG. It trades about 0.15 of its potential returns per unit of risk. EVN AG is currently generating about -0.15 per unit of risk. If you would invest 1,040 in AGRANA Beteiligungs Aktiengesellschaft on August 27, 2024 and sell it today you would earn a total of 70.00 from holding AGRANA Beteiligungs Aktiengesellschaft or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRANA Beteiligungs Aktiengese vs. EVN AG
Performance |
| Timeline |
| AGRANA Beteiligungs |
| EVN AG |
AGRANA Beteiligungs and EVN AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRANA Beteiligungs and EVN AG
The main advantage of trading using opposite AGRANA Beteiligungs and EVN AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, EVN AG 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 EVN AG will offset losses from the drop in EVN AG's long position.| 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 CEOs Directory module to screen CEOs from public companies around the world.
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