Correlation Between AGRANA Beteiligungs and KTM Industries
Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and KTM Industries 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 KTM Industries 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 KTM Industries AG, you can compare the effects of market volatilities on AGRANA Beteiligungs and KTM Industries 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 KTM Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and KTM Industries.
Diversification Opportunities for AGRANA Beteiligungs and KTM Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRANA and KTM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and KTM Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTM Industries 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 KTM Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTM Industries AG has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and KTM Industries go up and down completely randomly.
Pair Corralation between AGRANA Beteiligungs and KTM Industries
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGRANA Beteiligungs Aktiengese vs. KTM Industries AG
Performance |
| Timeline |
| AGRANA Beteiligungs |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGRANA Beteiligungs and KTM Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRANA Beteiligungs and KTM Industries
The main advantage of trading using opposite AGRANA Beteiligungs and KTM Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, KTM Industries 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 KTM Industries will offset losses from the drop in KTM Industries' long position.| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
| KTM Industries vs. Wiener Privatbank SE | KTM Industries vs. Erste Group Bank | KTM Industries vs. Vienna Insurance Group | KTM Industries vs. Addiko Bank 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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