Correlation Between Agroliga Group and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Agroliga Group and Intersport Polska 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 Intersport Polska 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 Intersport Polska SA, you can compare the effects of market volatilities on Agroliga Group and Intersport Polska 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agroliga Group and Intersport Polska.
Diversification Opportunities for Agroliga Group and Intersport Polska
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agroliga and Intersport is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Agroliga Group PLC and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Agroliga Group i.e., Agroliga Group and Intersport Polska go up and down completely randomly.
Pair Corralation between Agroliga Group and Intersport Polska
Assuming the 90 days trading horizon Agroliga Group is expected to generate 2.86 times less return on investment than Intersport Polska. But when comparing it to its historical volatility, Agroliga Group PLC is 1.76 times less risky than Intersport Polska. It trades about 0.01 of its potential returns per unit of risk. Intersport Polska SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Intersport Polska SA on August 28, 2024 and sell it today you would lose (17.00) from holding Intersport Polska SA or give up 19.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.45% |
| Values | Daily Returns |
Agroliga Group PLC vs. Intersport Polska SA
Performance |
| Timeline |
| Agroliga Group PLC |
| Intersport Polska |
Agroliga Group and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agroliga Group and Intersport Polska
The main advantage of trading using opposite Agroliga Group and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agroliga Group position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.| Agroliga Group vs. Clean Carbon Energy | Agroliga Group vs. ADX | Agroliga Group vs. Vee SA | Agroliga Group vs. Novina SA |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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