Correlation Between Agricultural Bank and Medprin Regenerative

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Can any of the company-specific risk be diversified away by investing in both Agricultural Bank and Medprin Regenerative 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 Agricultural Bank and Medprin Regenerative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agricultural Bank of and Medprin Regenerative Medical, you can compare the effects of market volatilities on Agricultural Bank and Medprin Regenerative 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 Agricultural Bank with a short position of Medprin Regenerative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Medprin Regenerative.

Diversification Opportunities for Agricultural Bank and Medprin Regenerative

-0.79
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Agricultural and Medprin is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Medprin Regenerative Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medprin Regenerative and Agricultural 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 Agricultural Bank of are associated (or correlated) with Medprin Regenerative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medprin Regenerative has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Medprin Regenerative go up and down completely randomly.

Pair Corralation between Agricultural Bank and Medprin Regenerative

Assuming the 90 days trading horizon Agricultural Bank is expected to generate 4.27 times less return on investment than Medprin Regenerative. But when comparing it to its historical volatility, Agricultural Bank of is 1.22 times less risky than Medprin Regenerative. It trades about 0.08 of its potential returns per unit of risk. Medprin Regenerative Medical is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  4,171  in Medprin Regenerative Medical on November 5, 2024 and sell it today you would earn a total of  301.00  from holding Medprin Regenerative Medical or generate 7.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Agricultural Bank of  vs.  Medprin Regenerative Medical

 Performance 
       Timeline  
Agricultural Bank 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Agricultural Bank of are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Agricultural Bank may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Medprin Regenerative 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Medprin Regenerative Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Agricultural Bank and Medprin Regenerative Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agricultural Bank and Medprin Regenerative

The main advantage of trading using opposite Agricultural Bank and Medprin Regenerative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Medprin Regenerative 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 Medprin Regenerative will offset losses from the drop in Medprin Regenerative's long position.
The idea behind Agricultural Bank of and Medprin Regenerative Medical 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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