Correlation Between Agrify Corp and Big Yellow
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Big Yellow 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 Big Yellow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Big Yellow Group, you can compare the effects of market volatilities on Agrify Corp and Big Yellow 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 Big Yellow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Big Yellow.
Diversification Opportunities for Agrify Corp and Big Yellow
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agrify and Big is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Big Yellow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Yellow Group 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 Big Yellow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Yellow Group has no effect on the direction of Agrify Corp i.e., Agrify Corp and Big Yellow go up and down completely randomly.
Pair Corralation between Agrify Corp and Big Yellow
Given the investment horizon of 90 days Agrify Corp is expected to generate 9.53 times more return on investment than Big Yellow. However, Agrify Corp is 9.53 times more volatile than Big Yellow Group. It trades about 0.68 of its potential returns per unit of risk. Big Yellow Group is currently generating about -0.19 per unit of risk. If you would invest 314.00 in Agrify Corp on September 4, 2024 and sell it today you would earn a total of 4,854 from holding Agrify Corp or generate 1545.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Agrify Corp vs. Big Yellow Group
Performance |
| Timeline |
| Agrify Corp |
| Big Yellow Group |
Agrify Corp and Big Yellow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Big Yellow
The main advantage of trading using opposite Agrify Corp and Big Yellow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Big Yellow 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 Big Yellow will offset losses from the drop in Big Yellow's long position.| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
| Big Yellow vs. Palo Alto Networks | Big Yellow vs. Singular Genomics Systems | Big Yellow vs. BlackRock | Big Yellow vs. Deckers Outdoor |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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