Correlation Between AgriFORCE Growing and Astra Agro
Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and Astra Agro 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 AgriFORCE Growing and Astra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriFORCE Growing Systems and Astra Agro Lestari, you can compare the effects of market volatilities on AgriFORCE Growing and Astra Agro 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 AgriFORCE Growing with a short position of Astra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and Astra Agro.
Diversification Opportunities for AgriFORCE Growing and Astra Agro
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AgriFORCE and Astra is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and Astra Agro Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Agro Lestari and AgriFORCE Growing 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 AgriFORCE Growing Systems are associated (or correlated) with Astra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Agro Lestari has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and Astra Agro go up and down completely randomly.
Pair Corralation between AgriFORCE Growing and Astra Agro
If you would invest 265.00 in AgriFORCE Growing Systems on October 26, 2024 and sell it today you would lose (4.00) from holding AgriFORCE Growing Systems or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
AgriFORCE Growing Systems vs. Astra Agro Lestari
Performance |
| Timeline |
| AgriFORCE Growing Systems |
| Astra Agro Lestari |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AgriFORCE Growing and Astra Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriFORCE Growing and Astra Agro
The main advantage of trading using opposite AgriFORCE Growing and Astra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, Astra Agro 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 Astra Agro will offset losses from the drop in Astra Agro's long position.| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
| Astra Agro vs. Forafric Global PLC | Astra Agro vs. Forafric Global PLC | Astra Agro vs. Australian Agricultural | Astra Agro vs. Limoneira Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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