Correlation Between AGRANA Beteiligungs and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and Wiener Privatbank 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 Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on AGRANA Beteiligungs and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and Wiener Privatbank.
Diversification Opportunities for AGRANA Beteiligungs and Wiener Privatbank
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGRANA and Wiener is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and Wiener Privatbank go up and down completely randomly.
Pair Corralation between AGRANA Beteiligungs and Wiener Privatbank
If you would invest 1,060 in AGRANA Beteiligungs Aktiengesellschaft on September 4, 2024 and sell it today you would earn a total of 15.00 from holding AGRANA Beteiligungs Aktiengesellschaft or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AGRANA Beteiligungs Aktiengese vs. Wiener Privatbank SE
Performance |
| Timeline |
| AGRANA Beteiligungs |
| Wiener Privatbank |
AGRANA Beteiligungs and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRANA Beteiligungs and Wiener Privatbank
The main advantage of trading using opposite AGRANA Beteiligungs and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank's long position.| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
| Wiener Privatbank vs. Raiffeisen Bank International | Wiener Privatbank vs. RATH Aktiengesellschaft | Wiener Privatbank vs. AT S Austria | Wiener Privatbank vs. Semperit Aktiengesellschaft Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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