Correlation Between BKS Bank and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both BKS Bank and AGRANA Beteiligungs 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 BKS Bank and AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKS Bank AG and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on BKS Bank and AGRANA Beteiligungs 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 BKS Bank with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and AGRANA Beteiligungs.
Diversification Opportunities for BKS Bank and AGRANA Beteiligungs
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between BKS and AGRANA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs and BKS Bank 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 BKS Bank AG are associated (or correlated) with AGRANA Beteiligungs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRANA Beteiligungs has no effect on the direction of BKS Bank i.e., BKS Bank and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between BKS Bank and AGRANA Beteiligungs
Assuming the 90 days trading horizon BKS Bank AG is expected to under-perform the AGRANA Beteiligungs. In addition to that, BKS Bank is 1.45 times more volatile than AGRANA Beteiligungs Aktiengesellschaft. It trades about -0.12 of its total potential returns per unit of risk. AGRANA Beteiligungs Aktiengesellschaft is currently generating about 0.08 per unit of volatility. 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BKS Bank AG vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| BKS Bank AG |
| AGRANA Beteiligungs |
BKS Bank and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKS Bank and AGRANA Beteiligungs
The main advantage of trading using opposite BKS Bank and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank position performs unexpectedly, AGRANA Beteiligungs 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 AGRANA Beteiligungs will offset losses from the drop in AGRANA Beteiligungs' long position.| BKS Bank vs. Oberbank AG | BKS Bank vs. Raiffeisen Bank International | BKS Bank vs. Wiener Privatbank SE | BKS Bank vs. Erste Group Bank |
| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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