Correlation Between Agrify Corp and Webuild SpA
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Webuild SpA 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 Webuild SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Webuild SpA ADR, you can compare the effects of market volatilities on Agrify Corp and Webuild SpA 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 Webuild SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Webuild SpA.
Diversification Opportunities for Agrify Corp and Webuild SpA
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agrify and Webuild is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Webuild SpA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webuild SpA ADR 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 Webuild SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webuild SpA ADR has no effect on the direction of Agrify Corp i.e., Agrify Corp and Webuild SpA go up and down completely randomly.
Pair Corralation between Agrify Corp and Webuild SpA
Given the investment horizon of 90 days Agrify Corp is expected to generate 16.06 times more return on investment than Webuild SpA. However, Agrify Corp is 16.06 times more volatile than Webuild SpA ADR. It trades about 0.73 of its potential returns per unit of risk. Webuild SpA ADR is currently generating about -0.04 per unit of risk. If you would invest 300.00 in Agrify Corp on September 1, 2024 and sell it today you would earn a total of 5,375 from holding Agrify Corp or generate 1791.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrify Corp vs. Webuild SpA ADR
Performance |
| Timeline |
| Agrify Corp |
| Webuild SpA ADR |
Agrify Corp and Webuild SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Webuild SpA
The main advantage of trading using opposite Agrify Corp and Webuild SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Webuild SpA 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 Webuild SpA will offset losses from the drop in Webuild SpA'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 |
| Webuild SpA vs. Orion Group Holdings | Webuild SpA vs. Agrify Corp | Webuild SpA vs. Matrix Service Co | Webuild SpA 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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