Correlation Between Facc AG and Palfinger
Can any of the company-specific risk be diversified away by investing in both Facc AG and Palfinger 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 Facc AG and Palfinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Facc AG and Palfinger AG, you can compare the effects of market volatilities on Facc AG and Palfinger 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 Facc AG with a short position of Palfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Facc AG and Palfinger.
Diversification Opportunities for Facc AG and Palfinger
Very weak diversification
The 3 months correlation between Facc and Palfinger is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Facc AG and Palfinger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palfinger AG and Facc AG 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 Facc AG are associated (or correlated) with Palfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palfinger AG has no effect on the direction of Facc AG i.e., Facc AG and Palfinger go up and down completely randomly.
Pair Corralation between Facc AG and Palfinger
Assuming the 90 days trading horizon Facc AG is expected to generate 1.59 times more return on investment than Palfinger. However, Facc AG is 1.59 times more volatile than Palfinger AG. It trades about 0.03 of its potential returns per unit of risk. Palfinger AG is currently generating about -0.05 per unit of risk. If you would invest 575.00 in Facc AG on August 26, 2024 and sell it today you would earn a total of 52.00 from holding Facc AG or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Facc AG vs. Palfinger AG
Performance |
| Timeline |
| Facc AG |
| Palfinger AG |
Facc AG and Palfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Facc AG and Palfinger
The main advantage of trading using opposite Facc AG and Palfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Facc AG position performs unexpectedly, Palfinger 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 Palfinger will offset losses from the drop in Palfinger's long position.| Facc AG vs. Voestalpine AG | Facc AG vs. Lenzing Aktiengesellschaft | Facc AG vs. AT S Austria | Facc AG vs. OMV Aktiengesellschaft |
| Palfinger vs. RATH Aktiengesellschaft | Palfinger vs. Semperit Aktiengesellschaft Holding | Palfinger vs. Oesterr Post AG | Palfinger vs. Anheuser Busch InBev SANV |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |