Correlation Between AGRANA Beteiligungs and Josef Manner
Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and Josef Manner 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 Josef Manner 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 Josef Manner Comp, you can compare the effects of market volatilities on AGRANA Beteiligungs and Josef Manner 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 Josef Manner. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and Josef Manner.
Diversification Opportunities for AGRANA Beteiligungs and Josef Manner
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGRANA and Josef is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and Josef Manner Comp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Josef Manner Comp 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 Josef Manner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Josef Manner Comp has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and Josef Manner go up and down completely randomly.
Pair Corralation between AGRANA Beteiligungs and Josef Manner
Assuming the 90 days trading horizon AGRANA Beteiligungs Aktiengesellschaft is expected to generate 1.46 times more return on investment than Josef Manner. However, AGRANA Beteiligungs is 1.46 times more volatile than Josef Manner Comp. It trades about 0.13 of its potential returns per unit of risk. Josef Manner Comp is currently generating about -0.05 per unit of risk. If you would invest 1,030 in AGRANA Beteiligungs Aktiengesellschaft on August 30, 2024 and sell it today you would earn a total of 60.00 from holding AGRANA Beteiligungs Aktiengesellschaft or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRANA Beteiligungs Aktiengese vs. Josef Manner Comp
Performance |
| Timeline |
| AGRANA Beteiligungs |
| Josef Manner Comp |
AGRANA Beteiligungs and Josef Manner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRANA Beteiligungs and Josef Manner
The main advantage of trading using opposite AGRANA Beteiligungs and Josef Manner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, Josef Manner 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 Josef Manner will offset losses from the drop in Josef Manner's long position.| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
| Josef Manner vs. EVN AG | Josef Manner vs. Oesterr Post AG | Josef Manner vs. Kapsch Traffic | Josef Manner vs. VERBUND 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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