Correlation Between Ag Growth and Mullen
Can any of the company-specific risk be diversified away by investing in both Ag Growth and Mullen 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 Ag Growth and Mullen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ag Growth International and Mullen Group, you can compare the effects of market volatilities on Ag Growth and Mullen 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 Ag Growth with a short position of Mullen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ag Growth and Mullen.
Diversification Opportunities for Ag Growth and Mullen
Very good diversification
The 3 months correlation between AFN and Mullen is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ag Growth International and Mullen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Group and Ag Growth 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 Ag Growth International are associated (or correlated) with Mullen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Group has no effect on the direction of Ag Growth i.e., Ag Growth and Mullen go up and down completely randomly.
Pair Corralation between Ag Growth and Mullen
Assuming the 90 days trading horizon Ag Growth International is expected to generate 1.92 times more return on investment than Mullen. However, Ag Growth is 1.92 times more volatile than Mullen Group. It trades about 0.2 of its potential returns per unit of risk. Mullen Group is currently generating about 0.15 per unit of risk. If you would invest 4,869 in Ag Growth International on August 29, 2024 and sell it today you would earn a total of 329.00 from holding Ag Growth International or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ag Growth International vs. Mullen Group
Performance |
| Timeline |
| Ag Growth International |
| Mullen Group |
Ag Growth and Mullen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ag Growth and Mullen
The main advantage of trading using opposite Ag Growth and Mullen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ag Growth position performs unexpectedly, Mullen 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 Mullen will offset losses from the drop in Mullen's long position.| Ag Growth vs. Exchange Income | Ag Growth vs. Stella Jones | Ag Growth vs. Superior Plus Corp | Ag Growth vs. NFI Group |
| Mullen vs. Pason Systems | Mullen vs. Westshore Terminals Investment | Mullen vs. Superior Plus Corp | Mullen vs. Gibson Energy |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |