Correlation Between AGRANA Beteiligungs and Kapsch Traffic
Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and Kapsch Traffic 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 Kapsch Traffic 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 Kapsch Traffic, you can compare the effects of market volatilities on AGRANA Beteiligungs and Kapsch Traffic 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 Kapsch Traffic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and Kapsch Traffic.
Diversification Opportunities for AGRANA Beteiligungs and Kapsch Traffic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGRANA and Kapsch is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and Kapsch Traffic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kapsch Traffic 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 Kapsch Traffic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kapsch Traffic has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and Kapsch Traffic go up and down completely randomly.
Pair Corralation between AGRANA Beteiligungs and Kapsch Traffic
Assuming the 90 days trading horizon AGRANA Beteiligungs Aktiengesellschaft is expected to under-perform the Kapsch Traffic. But the stock apears to be less risky and, when comparing its historical volatility, AGRANA Beteiligungs Aktiengesellschaft is 1.95 times less risky than Kapsch Traffic. The stock trades about -0.21 of its potential returns per unit of risk. The Kapsch Traffic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 702.00 in Kapsch Traffic on November 28, 2024 and sell it today you would earn a total of 14.00 from holding Kapsch Traffic or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRANA Beteiligungs Aktiengese vs. Kapsch Traffic
Performance |
| Timeline |
| AGRANA Beteiligungs |
| Kapsch Traffic |
AGRANA Beteiligungs and Kapsch Traffic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRANA Beteiligungs and Kapsch Traffic
The main advantage of trading using opposite AGRANA Beteiligungs and Kapsch Traffic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, Kapsch Traffic 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 Kapsch Traffic will offset losses from the drop in Kapsch Traffic's long position.| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
| Kapsch Traffic vs. Lenzing Aktiengesellschaft | Kapsch Traffic vs. Vienna Insurance Group | Kapsch Traffic vs. Semperit Aktiengesellschaft Holding | Kapsch Traffic vs. EVN 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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