Correlation Between Agrify Corp and Correlate Infrastructure
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Correlate 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 Agrify Corp and Correlate Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Correlate Infrastructure Partners, you can compare the effects of market volatilities on Agrify Corp and Correlate 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 Agrify Corp with a short position of Correlate Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Correlate Infrastructure.
Diversification Opportunities for Agrify Corp and Correlate Infrastructure
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agrify and Correlate is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Correlate Infrastructure Partn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Correlate Infrastructure 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 Correlate Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Correlate Infrastructure has no effect on the direction of Agrify Corp i.e., Agrify Corp and Correlate Infrastructure go up and down completely randomly.
Pair Corralation between Agrify Corp and Correlate Infrastructure
Given the investment horizon of 90 days Agrify Corp is expected to generate 0.57 times more return on investment than Correlate Infrastructure. However, Agrify Corp is 1.75 times less risky than Correlate Infrastructure. It trades about 0.33 of its potential returns per unit of risk. Correlate Infrastructure Partners is currently generating about 0.09 per unit of risk. If you would invest 354.00 in Agrify Corp on September 2, 2024 and sell it today you would earn a total of 5,321 from holding Agrify Corp or generate 1503.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrify Corp vs. Correlate Infrastructure Partn
Performance |
| Timeline |
| Agrify Corp |
| Correlate Infrastructure |
Agrify Corp and Correlate Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Correlate Infrastructure
The main advantage of trading using opposite Agrify Corp and Correlate Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Correlate 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 Correlate Infrastructure will offset losses from the drop in Correlate Infrastructure'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 |
| Correlate Infrastructure vs. Orion Group Holdings | Correlate Infrastructure vs. Agrify Corp | Correlate Infrastructure vs. Matrix Service Co | Correlate Infrastructure 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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