Correlation Between Schoeller Bleckmann and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Schoeller Bleckmann 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 Schoeller Bleckmann and AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schoeller Bleckmann Oilfield Equipment and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Schoeller Bleckmann 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 Schoeller Bleckmann with a short position of AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schoeller Bleckmann and AGRANA Beteiligungs.
Diversification Opportunities for Schoeller Bleckmann and AGRANA Beteiligungs
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Schoeller and AGRANA is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Schoeller Bleckmann Oilfield E and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs and Schoeller Bleckmann 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 Schoeller Bleckmann Oilfield Equipment 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 Schoeller Bleckmann i.e., Schoeller Bleckmann and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Schoeller Bleckmann and AGRANA Beteiligungs
Assuming the 90 days trading horizon Schoeller Bleckmann is expected to generate 1.89 times less return on investment than AGRANA Beteiligungs. In addition to that, Schoeller Bleckmann is 1.09 times more volatile than AGRANA Beteiligungs Aktiengesellschaft. It trades about 0.06 of its total potential returns per unit of risk. AGRANA Beteiligungs Aktiengesellschaft is currently generating about 0.13 per unit of volatility. If you would invest 1,030 in AGRANA Beteiligungs Aktiengesellschaft on August 30, 2024 and sell it today you would earn a total of 60.00 from holding AGRANA Beteiligungs Aktiengesellschaft or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schoeller Bleckmann Oilfield E vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| Schoeller Bleckmann |
| AGRANA Beteiligungs |
Schoeller Bleckmann and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schoeller Bleckmann and AGRANA Beteiligungs
The main advantage of trading using opposite Schoeller Bleckmann and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schoeller Bleckmann 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.| Schoeller Bleckmann vs. Voestalpine AG | Schoeller Bleckmann vs. Andritz AG | Schoeller Bleckmann vs. Wienerberger AG | Schoeller Bleckmann vs. OMV Aktiengesellschaft |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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