Correlation Between AgriFORCE Growing and CHS
Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and CHS 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 CHS 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 CHS Inc CL, you can compare the effects of market volatilities on AgriFORCE Growing and CHS 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 CHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and CHS.
Diversification Opportunities for AgriFORCE Growing and CHS
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AgriFORCE and CHS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and CHS Inc CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CL 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 CHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHS Inc CL has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and CHS go up and down completely randomly.
Pair Corralation between AgriFORCE Growing and CHS
Given the investment horizon of 90 days AgriFORCE Growing Systems is expected to under-perform the CHS. In addition to that, AgriFORCE Growing is 16.62 times more volatile than CHS Inc CL. It trades about -0.09 of its total potential returns per unit of risk. CHS Inc CL is currently generating about 0.04 per unit of volatility. If you would invest 2,531 in CHS Inc CL on August 31, 2024 and sell it today you would earn a total of 47.00 from holding CHS Inc CL or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriFORCE Growing Systems vs. CHS Inc CL
Performance |
| Timeline |
| AgriFORCE Growing Systems |
| CHS Inc CL |
AgriFORCE Growing and CHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriFORCE Growing and CHS
The main advantage of trading using opposite AgriFORCE Growing and CHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, CHS 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 CHS will offset losses from the drop in CHS's long position.| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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