Correlation Between Wisher Industrial and AGV Products
Can any of the company-specific risk be diversified away by investing in both Wisher Industrial and AGV Products 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 Wisher Industrial and AGV Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisher Industrial Co and AGV Products Corp, you can compare the effects of market volatilities on Wisher Industrial and AGV Products 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 Wisher Industrial with a short position of AGV Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisher Industrial and AGV Products.
Diversification Opportunities for Wisher Industrial and AGV Products
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wisher and AGV is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wisher Industrial Co and AGV Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGV Products Corp and Wisher Industrial 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 Wisher Industrial Co are associated (or correlated) with AGV Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGV Products Corp has no effect on the direction of Wisher Industrial i.e., Wisher Industrial and AGV Products go up and down completely randomly.
Pair Corralation between Wisher Industrial and AGV Products
Assuming the 90 days trading horizon Wisher Industrial Co is expected to under-perform the AGV Products. But the stock apears to be less risky and, when comparing its historical volatility, Wisher Industrial Co is 1.73 times less risky than AGV Products. The stock trades about -0.11 of its potential returns per unit of risk. The AGV Products Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,185 in AGV Products Corp on November 27, 2024 and sell it today you would earn a total of 30.00 from holding AGV Products Corp or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisher Industrial Co vs. AGV Products Corp
Performance |
| Timeline |
| Wisher Industrial |
| AGV Products Corp |
Wisher Industrial and AGV Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisher Industrial and AGV Products
The main advantage of trading using opposite Wisher Industrial and AGV Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisher Industrial position performs unexpectedly, AGV Products 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 AGV Products will offset losses from the drop in AGV Products' long position.| Wisher Industrial vs. De Licacy Industrial | Wisher Industrial vs. Nien Hsing Textile | Wisher Industrial vs. Tainan Enterprises Co | Wisher Industrial vs. Tex Ray Industrial Co |
| AGV Products vs. Taisun Enterprise Co | AGV Products vs. Wei Chuan Foods | AGV Products vs. Hunya Foods Co | AGV Products vs. Chia Hsin Cement |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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