Correlation Between Agro Capital and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Agro Capital and FTAI Infrastructure 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 Agro Capital and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agro Capital Management and FTAI Infrastructure, you can compare the effects of market volatilities on Agro Capital and FTAI Infrastructure 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 Agro Capital with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Capital and FTAI Infrastructure.
Diversification Opportunities for Agro Capital and FTAI Infrastructure
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agro and FTAI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Agro Capital Management and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Agro Capital 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 Agro Capital Management are associated (or correlated) with FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Agro Capital i.e., Agro Capital and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Agro Capital and FTAI Infrastructure
Given the investment horizon of 90 days Agro Capital Management is expected to generate 10.31 times more return on investment than FTAI Infrastructure. However, Agro Capital is 10.31 times more volatile than FTAI Infrastructure. It trades about 0.12 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about -0.07 per unit of risk. If you would invest 1.69 in Agro Capital Management on August 24, 2024 and sell it today you would lose (0.19) from holding Agro Capital Management or give up 11.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agro Capital Management vs. FTAI Infrastructure
Performance |
| Timeline |
| Agro Capital Management |
| FTAI Infrastructure |
Agro Capital and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Capital and FTAI Infrastructure
The main advantage of trading using opposite Agro Capital and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Capital position performs unexpectedly, FTAI Infrastructure 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 FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Agro Capital vs. Grupo Bimbo SAB | Agro Capital vs. Becle SA de | Agro Capital vs. HUMANA INC | Agro Capital vs. Aquagold International |
| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |