Correlation Between Agrify Corp and Bouygues
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Bouygues 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 Agrify Corp and Bouygues into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Bouygues SA, you can compare the effects of market volatilities on Agrify Corp and Bouygues 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 Agrify Corp with a short position of Bouygues. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Bouygues.
Diversification Opportunities for Agrify Corp and Bouygues
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agrify and Bouygues is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Bouygues SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bouygues SA and Agrify Corp 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 Agrify Corp are associated (or correlated) with Bouygues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bouygues SA has no effect on the direction of Agrify Corp i.e., Agrify Corp and Bouygues go up and down completely randomly.
Pair Corralation between Agrify Corp and Bouygues
Given the investment horizon of 90 days Agrify Corp is expected to generate 5.07 times more return on investment than Bouygues. However, Agrify Corp is 5.07 times more volatile than Bouygues SA. It trades about 0.04 of its potential returns per unit of risk. Bouygues SA is currently generating about -0.02 per unit of risk. If you would invest 6,240 in Agrify Corp on August 31, 2024 and sell it today you would lose (785.00) from holding Agrify Corp or give up 12.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 60.41% |
| Values | Daily Returns |
Agrify Corp vs. Bouygues SA
Performance |
| Timeline |
| Agrify Corp |
| Bouygues SA |
Agrify Corp and Bouygues Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Bouygues
The main advantage of trading using opposite Agrify Corp and Bouygues positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Bouygues 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 Bouygues will offset losses from the drop in Bouygues' long position.| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
| Bouygues vs. Orion Group Holdings | Bouygues vs. Agrify Corp | Bouygues vs. Matrix Service Co | Bouygues vs. MYR Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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