Correlation Between Agrometal SAI and Bolsas Y
Can any of the company-specific risk be diversified away by investing in both Agrometal SAI and Bolsas Y 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 Agrometal SAI and Bolsas Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrometal SAI and Bolsas y Mercados, you can compare the effects of market volatilities on Agrometal SAI and Bolsas Y 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 Agrometal SAI with a short position of Bolsas Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrometal SAI and Bolsas Y.
Diversification Opportunities for Agrometal SAI and Bolsas Y
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agrometal and Bolsas is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Agrometal SAI and Bolsas y Mercados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsas y Mercados and Agrometal SAI 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 Agrometal SAI are associated (or correlated) with Bolsas Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsas y Mercados has no effect on the direction of Agrometal SAI i.e., Agrometal SAI and Bolsas Y go up and down completely randomly.
Pair Corralation between Agrometal SAI and Bolsas Y
Assuming the 90 days trading horizon Agrometal SAI is expected to generate 1.36 times more return on investment than Bolsas Y. However, Agrometal SAI is 1.36 times more volatile than Bolsas y Mercados. It trades about 0.29 of its potential returns per unit of risk. Bolsas y Mercados is currently generating about 0.19 per unit of risk. If you would invest 5,500 in Agrometal SAI on August 25, 2024 and sell it today you would earn a total of 2,210 from holding Agrometal SAI or generate 40.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrometal SAI vs. Bolsas y Mercados
Performance |
| Timeline |
| Agrometal SAI |
| Bolsas y Mercados |
Agrometal SAI and Bolsas Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrometal SAI and Bolsas Y
The main advantage of trading using opposite Agrometal SAI and Bolsas Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrometal SAI position performs unexpectedly, Bolsas Y 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 Bolsas Y will offset losses from the drop in Bolsas Y's long position.| Agrometal SAI vs. United States Steel | Agrometal SAI vs. Pfizer Inc | Agrometal SAI vs. Distribuidora de Gas | Agrometal SAI vs. IRSA Propiedades Comerciales |
| Bolsas Y vs. Transportadora de Gas | Bolsas Y vs. Agrometal SAI | Bolsas Y vs. Compania de Transporte | Bolsas Y vs. Harmony Gold Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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