Correlation Between AGRANA Beteiligungs and Burgenland Holding

Can any of the company-specific risk be diversified away by investing in both AGRANA Beteiligungs and Burgenland Holding 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 AGRANA Beteiligungs and Burgenland Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGRANA Beteiligungs Aktiengesellschaft and Burgenland Holding Aktiengesellschaft, you can compare the effects of market volatilities on AGRANA Beteiligungs and Burgenland Holding 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 AGRANA Beteiligungs with a short position of Burgenland Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRANA Beteiligungs and Burgenland Holding.

Diversification Opportunities for AGRANA Beteiligungs and Burgenland Holding

0.0

Correlation Coefficient

AGRANA Beteiligungs  Burgenland Holding

Pay attention - limited upside

The 3 months correlation between AGRANA and Burgenland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGRANA Beteiligungs Aktiengese and Burgenland Holding Aktiengesel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burgenland Holding and AGRANA Beteiligungs 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 AGRANA Beteiligungs Aktiengesellschaft are associated (or correlated) with Burgenland Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burgenland Holding has no effect on the direction of AGRANA Beteiligungs i.e., AGRANA Beteiligungs and Burgenland Holding go up and down completely randomly.

Pair Corralation between AGRANA Beteiligungs and Burgenland Holding

If you would invest (100.00) in AGRANA Beteiligungs Aktiengesellschaft on December 31, 2024 and sell it today you would earn a total of  100.00  from holding AGRANA Beteiligungs Aktiengesellschaft or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AGRANA Beteiligungs Aktiengese  vs.  Burgenland Holding Aktiengesel

AGRANA Beteiligungs

Risk-Adjusted Performance

Modest

Over the last 90 days AGRANA Beteiligungs Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, AGRANA Beteiligungs is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Burgenland Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Burgenland Holding Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Burgenland Holding is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with AGRANA Beteiligungs and Burgenland Holding

The main advantage of trading using opposite AGRANA Beteiligungs and Burgenland Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRANA Beteiligungs position performs unexpectedly, Burgenland Holding 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 Burgenland Holding will offset losses from the drop in Burgenland Holding's long position.

The idea behind AGRANA Beteiligungs Aktiengesellschaft and Burgenland Holding Aktiengesellschaft pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.