Correlation Between Agroliga Group and Amica SA
Can any of the company-specific risk be diversified away by investing in both Agroliga Group and Amica 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 Agroliga Group and Amica SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agroliga Group PLC and Amica SA, you can compare the effects of market volatilities on Agroliga Group and Amica 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 Agroliga Group with a short position of Amica SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agroliga Group and Amica SA.
Diversification Opportunities for Agroliga Group and Amica SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agroliga and Amica is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Agroliga Group PLC and Amica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amica SA and Agroliga Group 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 Agroliga Group PLC are associated (or correlated) with Amica SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amica SA has no effect on the direction of Agroliga Group i.e., Agroliga Group and Amica SA go up and down completely randomly.
Pair Corralation between Agroliga Group and Amica SA
Assuming the 90 days trading horizon Agroliga Group PLC is expected to generate 1.83 times more return on investment than Amica SA. However, Agroliga Group is 1.83 times more volatile than Amica SA. It trades about 0.0 of its potential returns per unit of risk. Amica SA is currently generating about -0.04 per unit of risk. If you would invest 2,200 in Agroliga Group PLC on August 26, 2024 and sell it today you would lose (310.00) from holding Agroliga Group PLC or give up 14.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.31% |
| Values | Daily Returns |
Agroliga Group PLC vs. Amica SA
Performance |
| Timeline |
| Agroliga Group PLC |
| Amica SA |
Agroliga Group and Amica SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agroliga Group and Amica SA
The main advantage of trading using opposite Agroliga Group and Amica SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agroliga Group position performs unexpectedly, Amica 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 Amica SA will offset losses from the drop in Amica SA's long position.| Agroliga Group vs. Clean Carbon Energy | Agroliga Group vs. ADX | Agroliga Group vs. Vee SA | Agroliga Group vs. Novina SA |
| Amica SA vs. Asseco South Eastern | Amica SA vs. Vercom SA | Amica SA vs. CFI Holding SA | Amica SA vs. Gobarto 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |