Correlation Between Agrify Corp and Vinci SA
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and Vinci SA 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 Vinci SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and Vinci SA ADR, you can compare the effects of market volatilities on Agrify Corp and Vinci SA 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 Vinci SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Vinci SA.
Diversification Opportunities for Agrify Corp and Vinci SA
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agrify and Vinci is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Vinci SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci SA 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 Vinci SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci SA ADR has no effect on the direction of Agrify Corp i.e., Agrify Corp and Vinci SA go up and down completely randomly.
Pair Corralation between Agrify Corp and Vinci SA
Given the investment horizon of 90 days Agrify Corp is expected to generate 25.32 times more return on investment than Vinci SA. However, Agrify Corp is 25.32 times more volatile than Vinci SA ADR. It trades about 0.65 of its potential returns per unit of risk. Vinci SA ADR is currently generating about -0.38 per unit of risk. If you would invest 319.00 in Agrify Corp on August 30, 2024 and sell it today you would earn a total of 5,136 from holding Agrify Corp or generate 1610.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrify Corp vs. Vinci SA ADR
Performance |
| Timeline |
| Agrify Corp |
| Vinci SA ADR |
Agrify Corp and Vinci SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and Vinci SA
The main advantage of trading using opposite Agrify Corp and Vinci SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, Vinci SA 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 Vinci SA will offset losses from the drop in Vinci SA'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 |
| Vinci SA vs. Arcadis NV | Vinci SA vs. KBR Inc | Vinci SA vs. Orion Group Holdings | Vinci SA vs. Jacobs 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 Stocks Directory module to find actively traded stocks across global markets.
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