Correlation Between Agrify Corp and Tcnicas Reunidas
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Tcnicas Reunidas 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 Tcnicas Reunidas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Tcnicas Reunidas SA, you can compare the effects of market volatilities on Agrify Corp and Tcnicas Reunidas 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 Tcnicas Reunidas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Tcnicas Reunidas.
Diversification Opportunities for Agrify Corp and Tcnicas Reunidas
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Agrify and Tcnicas is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Tcnicas Reunidas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcnicas Reunidas 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 Tcnicas Reunidas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcnicas Reunidas has no effect on the direction of Agrify Corp i.e., Agrify Corp and Tcnicas Reunidas go up and down completely randomly.
Pair Corralation between Agrify Corp and Tcnicas Reunidas
Given the investment horizon of 90 days Agrify Corp is expected to generate 2.3 times more return on investment than Tcnicas Reunidas. However, Agrify Corp is 2.3 times more volatile than Tcnicas Reunidas SA. It trades about 0.72 of its potential returns per unit of risk. Tcnicas Reunidas SA is currently generating about 0.22 per unit of risk. If you would invest 311.00 in Agrify Corp on September 2, 2024 and sell it today you would earn a total of 5,364 from holding Agrify Corp or generate 1724.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrify Corp vs. Tcnicas Reunidas SA
Performance |
| Timeline |
| Agrify Corp |
| Tcnicas Reunidas |
Agrify Corp and Tcnicas Reunidas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Tcnicas Reunidas
The main advantage of trading using opposite Agrify Corp and Tcnicas Reunidas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Tcnicas Reunidas 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 Tcnicas Reunidas will offset losses from the drop in Tcnicas Reunidas' long position.| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
| Tcnicas Reunidas vs. Babcock International Group | Tcnicas Reunidas vs. Babcock International Group | Tcnicas Reunidas vs. China State Construction | Tcnicas Reunidas vs. Bouygues SA |
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 Stocks Directory module to find actively traded stocks across global markets.
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