Correlation Between Agrometal SAI and United States
Can any of the company-specific risk be diversified away by investing in both Agrometal SAI and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrometal SAI and United States Steel, you can compare the effects of market volatilities on Agrometal SAI and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrometal SAI and United States.
Diversification Opportunities for Agrometal SAI and United States
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agrometal and United is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Agrometal SAI and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Agrometal SAI i.e., Agrometal SAI and United States go up and down completely randomly.
Pair Corralation between Agrometal SAI and United States
Assuming the 90 days trading horizon Agrometal SAI is expected to generate 1.02 times less return on investment than United States. In addition to that, Agrometal SAI is 1.52 times more volatile than United States Steel. It trades about 0.07 of its total potential returns per unit of risk. United States Steel is currently generating about 0.1 per unit of volatility. If you would invest 291,300 in United States Steel on August 26, 2024 and sell it today you would earn a total of 1,168,700 from holding United States Steel or generate 401.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrometal SAI vs. United States Steel
Performance |
| Timeline |
| Agrometal SAI |
| United States Steel |
Agrometal SAI and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrometal SAI and United States
The main advantage of trading using opposite Agrometal SAI and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrometal SAI position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Agrometal SAI vs. Harmony Gold Mining | Agrometal SAI vs. United States Steel | Agrometal SAI vs. Compania de Transporte |
| United States vs. Telecom Argentina | United States vs. Harmony Gold Mining | United States vs. Agrometal SAI | United States vs. Compania de Transporte |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |