Correlation Between Mayr Melnhof and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Mayr Melnhof 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 Mayr Melnhof and AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayr Melnhof Karton AG and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Mayr Melnhof 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 Mayr Melnhof with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayr Melnhof and AGRANA Beteiligungs.
Diversification Opportunities for Mayr Melnhof and AGRANA Beteiligungs
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mayr and AGRANA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mayr Melnhof Karton 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 Mayr Melnhof 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 Mayr Melnhof Karton 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 Mayr Melnhof i.e., Mayr Melnhof and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Mayr Melnhof and AGRANA Beteiligungs
Assuming the 90 days trading horizon Mayr Melnhof Karton AG is expected to under-perform the AGRANA Beteiligungs. In addition to that, Mayr Melnhof is 1.26 times more volatile than AGRANA Beteiligungs Aktiengesellschaft. It trades about -0.1 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 |
Mayr Melnhof Karton AG vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| Mayr Melnhof Karton |
| AGRANA Beteiligungs |
Mayr Melnhof and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayr Melnhof and AGRANA Beteiligungs
The main advantage of trading using opposite Mayr Melnhof and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayr Melnhof 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.| Mayr Melnhof vs. Wienerberger AG | Mayr Melnhof vs. Andritz AG | Mayr Melnhof vs. Lenzing Aktiengesellschaft | Mayr Melnhof vs. EVN AG |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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