Correlation Between Agrometal SAI and Garcia Reguera
Can any of the company-specific risk be diversified away by investing in both Agrometal SAI and Garcia Reguera 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 Garcia Reguera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrometal SAI and Garcia Reguera SA, you can compare the effects of market volatilities on Agrometal SAI and Garcia Reguera 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 Garcia Reguera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrometal SAI and Garcia Reguera.
Diversification Opportunities for Agrometal SAI and Garcia Reguera
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agrometal and Garcia is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Agrometal SAI and Garcia Reguera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garcia Reguera SA 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 Garcia Reguera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garcia Reguera SA has no effect on the direction of Agrometal SAI i.e., Agrometal SAI and Garcia Reguera go up and down completely randomly.
Pair Corralation between Agrometal SAI and Garcia Reguera
Assuming the 90 days trading horizon Agrometal SAI is expected to generate 3.18 times more return on investment than Garcia Reguera. However, Agrometal SAI is 3.18 times more volatile than Garcia Reguera SA. It trades about 0.27 of its potential returns per unit of risk. Garcia Reguera SA is currently generating about -0.06 per unit of risk. If you would invest 5,830 in Agrometal SAI on September 13, 2024 and sell it today you would earn a total of 1,500 from holding Agrometal SAI or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agrometal SAI vs. Garcia Reguera SA
Performance |
| Timeline |
| Agrometal SAI |
| Garcia Reguera SA |
Agrometal SAI and Garcia Reguera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrometal SAI and Garcia Reguera
The main advantage of trading using opposite Agrometal SAI and Garcia Reguera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrometal SAI position performs unexpectedly, Garcia Reguera 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 Garcia Reguera will offset losses from the drop in Garcia Reguera's long position.| Agrometal SAI vs. American Express Co | Agrometal SAI vs. QUALCOMM Incorporated | Agrometal SAI vs. United States Steel | Agrometal SAI vs. Pfizer Inc |
| Garcia Reguera vs. Alibaba Group Holding | Garcia Reguera vs. Apple Inc DRC | Garcia Reguera vs. Alphabet Inc Class A CEDEAR | Garcia Reguera vs. Amazon Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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