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 CM, 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
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AgriFORCE and CHS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and CHS Inc CM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CM 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 CM 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 15.52 times more volatile than CHS Inc CM. It trades about -0.09 of its total potential returns per unit of risk. CHS Inc CM is currently generating about 0.02 per unit of volatility. If you would invest 2,486 in CHS Inc CM on August 31, 2024 and sell it today you would earn a total of 27.00 from holding CHS Inc CM or generate 1.09% 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 CM
Performance |
| Timeline |
| AgriFORCE Growing Systems |
| CHS Inc CM |
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 CEOs Directory module to screen CEOs from public companies around the world.
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