Correlation Between Agrify Corp and Dirtt Environmen
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Dirtt Environmen 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 Dirtt Environmen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Dirtt Environmen, you can compare the effects of market volatilities on Agrify Corp and Dirtt Environmen 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 Dirtt Environmen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Dirtt Environmen.
Diversification Opportunities for Agrify Corp and Dirtt Environmen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agrify and Dirtt is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Dirtt Environmen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirtt Environmen 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 Dirtt Environmen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirtt Environmen has no effect on the direction of Agrify Corp i.e., Agrify Corp and Dirtt Environmen go up and down completely randomly.
Pair Corralation between Agrify Corp and Dirtt Environmen
Given the investment horizon of 90 days Agrify Corp is expected to generate 1.43 times more return on investment than Dirtt Environmen. However, Agrify Corp is 1.43 times more volatile than Dirtt Environmen. It trades about 0.03 of its potential returns per unit of risk. Dirtt Environmen is currently generating about 0.03 per unit of risk. If you would invest 27,600 in Agrify Corp on August 30, 2024 and sell it today you would lose (22,145) from holding Agrify Corp or give up 80.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.25% |
| Values | Daily Returns |
Agrify Corp vs. Dirtt Environmen
Performance |
| Timeline |
| Agrify Corp |
| Dirtt Environmen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agrify Corp and Dirtt Environmen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Dirtt Environmen
The main advantage of trading using opposite Agrify Corp and Dirtt Environmen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Dirtt Environmen 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 Dirtt Environmen will offset losses from the drop in Dirtt Environmen'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 |
| Dirtt Environmen vs. Orion Group Holdings | Dirtt Environmen vs. ENGlobal | Dirtt Environmen vs. Cardno Limited | Dirtt Environmen vs. JNS Holdings Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |