Correlation Between AGRICUL BK and TAG Immobilien
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and TAG Immobilien 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 AGRICUL BK and TAG Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and TAG Immobilien AG, you can compare the effects of market volatilities on AGRICUL BK and TAG Immobilien 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 AGRICUL BK with a short position of TAG Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and TAG Immobilien.
Diversification Opportunities for AGRICUL BK and TAG Immobilien
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGRICUL and TAG is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and TAG Immobilien AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAG Immobilien AG and AGRICUL BK 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 AGRICUL BK CHINA H are associated (or correlated) with TAG Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAG Immobilien AG has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and TAG Immobilien go up and down completely randomly.
Pair Corralation between AGRICUL BK and TAG Immobilien
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 1.05 times more return on investment than TAG Immobilien. However, AGRICUL BK is 1.05 times more volatile than TAG Immobilien AG. It trades about 0.01 of its potential returns per unit of risk. TAG Immobilien AG is currently generating about -0.15 per unit of risk. If you would invest 46.00 in AGRICUL BK CHINA H on August 27, 2024 and sell it today you would earn a total of 0.00 from holding AGRICUL BK CHINA H or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. TAG Immobilien AG
Performance |
| Timeline |
| AGRICUL BK CHINA |
| TAG Immobilien AG |
AGRICUL BK and TAG Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and TAG Immobilien
The main advantage of trading using opposite AGRICUL BK and TAG Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, TAG Immobilien 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 TAG Immobilien will offset losses from the drop in TAG Immobilien's long position.| AGRICUL BK vs. ACCSYS TECHPLC EO | AGRICUL BK vs. Wyndham Hotels Resorts | AGRICUL BK vs. FARO Technologies | AGRICUL BK vs. MHP Hotel AG |
| TAG Immobilien vs. Hyster Yale Materials Handling | TAG Immobilien vs. Martin Marietta Materials | TAG Immobilien vs. GOODYEAR T RUBBER | TAG Immobilien vs. Goodyear Tire Rubber |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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