Correlation Between Ag Growth and Palfinger
Can any of the company-specific risk be diversified away by investing in both Ag Growth and Palfinger 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 Palfinger 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 Palfinger AG, you can compare the effects of market volatilities on Ag Growth and Palfinger 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 Palfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ag Growth and Palfinger.
Diversification Opportunities for Ag Growth and Palfinger
Excellent diversification
The 3 months correlation between AGGZF and Palfinger is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ag Growth International and Palfinger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palfinger AG 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 Palfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palfinger AG has no effect on the direction of Ag Growth i.e., Ag Growth and Palfinger go up and down completely randomly.
Pair Corralation between Ag Growth and Palfinger
Assuming the 90 days horizon Ag Growth International is expected to under-perform the Palfinger. In addition to that, Ag Growth is 1.6 times more volatile than Palfinger AG. It trades about -0.07 of its total potential returns per unit of risk. Palfinger AG is currently generating about 0.05 per unit of volatility. If you would invest 2,103 in Palfinger AG on January 15, 2025 and sell it today you would earn a total of 1,197 from holding Palfinger AG or generate 56.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 34.68% |
| Values | Daily Returns |
Ag Growth International vs. Palfinger AG
Performance |
| Timeline |
| Ag Growth International |
| Palfinger AG |
Ag Growth and Palfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ag Growth and Palfinger
The main advantage of trading using opposite Ag Growth and Palfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ag Growth position performs unexpectedly, Palfinger 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 Palfinger will offset losses from the drop in Palfinger's 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 |
| Palfinger vs. ASML Holding NV | Palfinger vs. Paiute Oil Mining | Palfinger vs. Allegion PLC | Palfinger vs. Tower Semiconductor |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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