Correlation Between AGRANA Beteiligungs and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and Raiffeisen Bank 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 Raiffeisen Bank 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 Raiffeisen Bank International, you can compare the effects of market volatilities on AGRANA Beteiligungs and Raiffeisen Bank 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 Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and Raiffeisen Bank.
Diversification Opportunities for AGRANA Beteiligungs and Raiffeisen Bank
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AGRANA and Raiffeisen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte 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 Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between AGRANA Beteiligungs and Raiffeisen Bank
Assuming the 90 days trading horizon AGRANA Beteiligungs is expected to generate 3.99 times less return on investment than Raiffeisen Bank. But when comparing it to its historical volatility, AGRANA Beteiligungs Aktiengesellschaft is 1.28 times less risky than Raiffeisen Bank. It trades about 0.08 of its potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,939 in Raiffeisen Bank International on October 24, 2024 and sell it today you would earn a total of 159.00 from holding Raiffeisen Bank International or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRANA Beteiligungs Aktiengese vs. Raiffeisen Bank International
Performance |
| Timeline |
| AGRANA Beteiligungs |
| Raiffeisen Bank Inte |
AGRANA Beteiligungs and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRANA Beteiligungs and Raiffeisen Bank
The main advantage of trading using opposite AGRANA Beteiligungs and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, Raiffeisen Bank 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank's long position.| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
| Raiffeisen Bank vs. BKS Bank AG | Raiffeisen Bank vs. Oberbank AG | Raiffeisen Bank vs. Wiener Privatbank SE | Raiffeisen Bank vs. Erste Group Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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