Correlation Between Raiffeisen Bank and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Raiffeisen 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 Raiffeisen 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 Raiffeisen Bank International and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Raiffeisen 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 Raiffeisen Bank with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and AGRANA Beteiligungs.
Diversification Opportunities for Raiffeisen Bank and AGRANA Beteiligungs
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Raiffeisen and AGRANA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs and Raiffeisen 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 Raiffeisen Bank International 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 Raiffeisen Bank i.e., Raiffeisen Bank and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and AGRANA Beteiligungs
Assuming the 90 days trading horizon Raiffeisen Bank International is expected to generate 1.42 times more return on investment than AGRANA Beteiligungs. However, Raiffeisen Bank is 1.42 times more volatile than AGRANA Beteiligungs Aktiengesellschaft. It trades about 0.41 of its potential returns per unit of risk. AGRANA Beteiligungs Aktiengesellschaft is currently generating about 0.08 per unit of risk. If you would invest 1,911 in Raiffeisen Bank International on November 4, 2024 and sell it today you would earn a total of 285.00 from holding Raiffeisen Bank International or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raiffeisen Bank International vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| Raiffeisen Bank Inte |
| AGRANA Beteiligungs |
Raiffeisen Bank and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raiffeisen Bank and AGRANA Beteiligungs
The main advantage of trading using opposite Raiffeisen Bank and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen 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.| Raiffeisen Bank vs. AMAG Austria Metall | Raiffeisen Bank vs. UNIQA Insurance Group | Raiffeisen Bank vs. BKS Bank AG | Raiffeisen Bank vs. Vienna 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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