Correlation Between Agritech and Crescent Steel
Can any of the company-specific risk be diversified away by investing in both Agritech and Crescent Steel 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 Agritech and Crescent Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agritech and Crescent Steel Allied, you can compare the effects of market volatilities on Agritech and Crescent Steel 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 Agritech with a short position of Crescent Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agritech and Crescent Steel.
Diversification Opportunities for Agritech and Crescent Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agritech and Crescent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agritech and Crescent Steel Allied in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Steel Allied and Agritech 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 Agritech are associated (or correlated) with Crescent Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Steel Allied has no effect on the direction of Agritech i.e., Agritech and Crescent Steel go up and down completely randomly.
Pair Corralation between Agritech and Crescent Steel
Assuming the 90 days trading horizon Agritech is expected to generate 0.87 times more return on investment than Crescent Steel. However, Agritech is 1.15 times less risky than Crescent Steel. It trades about 0.33 of its potential returns per unit of risk. Crescent Steel Allied is currently generating about 0.03 per unit of risk. If you would invest 3,800 in Agritech on October 26, 2024 and sell it today you would earn a total of 969.00 from holding Agritech or generate 25.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agritech vs. Crescent Steel Allied
Performance |
| Timeline |
| Agritech |
| Crescent Steel Allied |
Agritech and Crescent Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agritech and Crescent Steel
The main advantage of trading using opposite Agritech and Crescent Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agritech position performs unexpectedly, Crescent Steel 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 Crescent Steel will offset losses from the drop in Crescent Steel's long position.| Agritech vs. Fauji Foods | Agritech vs. Matco Foods | Agritech vs. Air Link Communication | Agritech vs. Avanceon |
| Crescent Steel vs. Wah Nobel Chemicals | Crescent Steel vs. Agritech | Crescent Steel vs. Hi Tech Lubricants | Crescent Steel vs. Jubilee Life Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |