Correlation Between Agrify Corp and ENGlobal
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and ENGlobal 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 ENGlobal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and ENGlobal, you can compare the effects of market volatilities on Agrify Corp and ENGlobal 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 ENGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and ENGlobal.
Diversification Opportunities for Agrify Corp and ENGlobal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agrify and ENGlobal is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and ENGlobal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGlobal 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 ENGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGlobal has no effect on the direction of Agrify Corp i.e., Agrify Corp and ENGlobal go up and down completely randomly.
Pair Corralation between Agrify Corp and ENGlobal
If you would invest 108.00 in ENGlobal on November 3, 2024 and sell it today you would earn a total of 0.00 from holding ENGlobal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Agrify Corp vs. ENGlobal
Performance |
| Timeline |
| Agrify Corp |
| ENGlobal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agrify Corp and ENGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and ENGlobal
The main advantage of trading using opposite Agrify Corp and ENGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, ENGlobal 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 ENGlobal will offset losses from the drop in ENGlobal'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 |
| ENGlobal vs. Fuel Tech | ENGlobal vs. Polar Power | ENGlobal vs. Ocean Power Technologies | ENGlobal vs. Pioneer Power Solutions |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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