Correlation Between Superior Plus and AGCO
Can any of the company-specific risk be diversified away by investing in both Superior Plus and AGCO 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 Superior Plus and AGCO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and AGCO Corporation, you can compare the effects of market volatilities on Superior Plus and AGCO 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 Superior Plus with a short position of AGCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and AGCO.
Diversification Opportunities for Superior Plus and AGCO
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and AGCO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and AGCO Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGCO and Superior Plus 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 Superior Plus Corp are associated (or correlated) with AGCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGCO has no effect on the direction of Superior Plus i.e., Superior Plus and AGCO go up and down completely randomly.
Pair Corralation between Superior Plus and AGCO
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the AGCO. In addition to that, Superior Plus is 1.63 times more volatile than AGCO Corporation. It trades about -0.01 of its total potential returns per unit of risk. AGCO Corporation is currently generating about 0.07 per unit of volatility. If you would invest 9,236 in AGCO Corporation on August 29, 2024 and sell it today you would earn a total of 330.00 from holding AGCO Corporation or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. AGCO Corp.
Performance |
| Timeline |
| Superior Plus Corp |
| AGCO |
Superior Plus and AGCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and AGCO
The main advantage of trading using opposite Superior Plus and AGCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, AGCO 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 AGCO will offset losses from the drop in AGCO's long position.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| AGCO vs. Superior Plus Corp | AGCO vs. NMI Holdings | AGCO vs. Origin Agritech | AGCO vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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