Correlation Between Agrify Corp and Singular Genomics
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Singular Genomics 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 Singular Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Singular Genomics Systems, you can compare the effects of market volatilities on Agrify Corp and Singular Genomics 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 Singular Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Singular Genomics.
Diversification Opportunities for Agrify Corp and Singular Genomics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agrify and Singular is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Singular Genomics Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Genomics Systems 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 Singular Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Genomics Systems has no effect on the direction of Agrify Corp i.e., Agrify Corp and Singular Genomics go up and down completely randomly.
Pair Corralation between Agrify Corp and Singular Genomics
Given the investment horizon of 90 days Agrify Corp is expected to generate 1.18 times more return on investment than Singular Genomics. However, Agrify Corp is 1.18 times more volatile than Singular Genomics Systems. It trades about 0.04 of its potential returns per unit of risk. Singular Genomics Systems is currently generating about 0.03 per unit of risk. If you would invest 6,210 in Agrify Corp on September 4, 2024 and sell it today you would lose (1,042) from holding Agrify Corp or give up 16.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrify Corp vs. Singular Genomics Systems
Performance |
| Timeline |
| Agrify Corp |
| Singular Genomics Systems |
Agrify Corp and Singular Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Singular Genomics
The main advantage of trading using opposite Agrify Corp and Singular Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Singular Genomics 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 Singular Genomics will offset losses from the drop in Singular Genomics' long position.| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
| Singular Genomics vs. InfuSystems Holdings | Singular Genomics vs. Pro Dex | Singular Genomics vs. LeMaitre Vascular | Singular Genomics vs. Utah Medical Products |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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