Correlation Between Kapsch Traffic and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Kapsch Traffic 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 Kapsch Traffic and AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kapsch Traffic and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Kapsch Traffic 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 Kapsch Traffic with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kapsch Traffic and AGRANA Beteiligungs.
Diversification Opportunities for Kapsch Traffic and AGRANA Beteiligungs
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kapsch and AGRANA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kapsch Traffic and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs and Kapsch Traffic 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 Kapsch Traffic 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 Kapsch Traffic i.e., Kapsch Traffic and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Kapsch Traffic and AGRANA Beteiligungs
Assuming the 90 days trading horizon Kapsch Traffic is expected to under-perform the AGRANA Beteiligungs. In addition to that, Kapsch Traffic is 1.52 times more volatile than AGRANA Beteiligungs Aktiengesellschaft. It trades about -0.07 of its total potential returns per unit of risk. AGRANA Beteiligungs Aktiengesellschaft is currently generating about -0.06 per unit of volatility. If you would invest 1,527 in AGRANA Beteiligungs Aktiengesellschaft on September 2, 2024 and sell it today you would lose (432.00) from holding AGRANA Beteiligungs Aktiengesellschaft or give up 28.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kapsch Traffic vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| Kapsch Traffic |
| AGRANA Beteiligungs |
Kapsch Traffic and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kapsch Traffic and AGRANA Beteiligungs
The main advantage of trading using opposite Kapsch Traffic and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kapsch Traffic 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.| Kapsch Traffic vs. Lenzing Aktiengesellschaft | Kapsch Traffic vs. Vienna Insurance Group | Kapsch Traffic vs. EVN AG | Kapsch Traffic vs. UNIQA Insurance Group |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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