Correlation Between Ag Growth and Close Brothers
Can any of the company-specific risk be diversified away by investing in both Ag Growth and Close Brothers 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 Ag Growth and Close Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ag Growth International and Close Brothers Group, you can compare the effects of market volatilities on Ag Growth and Close Brothers 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 Ag Growth with a short position of Close Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ag Growth and Close Brothers.
Diversification Opportunities for Ag Growth and Close Brothers
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGGZF and Close is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ag Growth International and Close Brothers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Close Brothers Group and Ag Growth 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 Ag Growth International are associated (or correlated) with Close Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Close Brothers Group has no effect on the direction of Ag Growth i.e., Ag Growth and Close Brothers go up and down completely randomly.
Pair Corralation between Ag Growth and Close Brothers
Assuming the 90 days horizon Ag Growth International is expected to generate 0.69 times more return on investment than Close Brothers. However, Ag Growth International is 1.46 times less risky than Close Brothers. It trades about 0.01 of its potential returns per unit of risk. Close Brothers Group is currently generating about -0.08 per unit of risk. If you would invest 3,912 in Ag Growth International on September 12, 2024 and sell it today you would lose (4.00) from holding Ag Growth International or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.36% |
| Values | Daily Returns |
Ag Growth International vs. Close Brothers Group
Performance |
| Timeline |
| Ag Growth International |
| Close Brothers Group |
Ag Growth and Close Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ag Growth and Close Brothers
The main advantage of trading using opposite Ag Growth and Close Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ag Growth position performs unexpectedly, Close Brothers 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 Close Brothers will offset losses from the drop in Close Brothers' long position.| Ag Growth vs. First Tractor | Ag Growth vs. AmeraMex International | Ag Growth vs. Arts Way Manufacturing Co | Ag Growth vs. American Premium Water |
| Close Brothers vs. Peoples Bancorp | Close Brothers vs. Primis Financial Corp | Close Brothers vs. ConnectOne Bancorp | Close Brothers vs. LINKBANCORP |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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