Correlation Between Agrogeneration and Amatheon Agri
Can any of the company-specific risk be diversified away by investing in both Agrogeneration and Amatheon Agri 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 Agrogeneration and Amatheon Agri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrogeneration and Amatheon Agri Holding, you can compare the effects of market volatilities on Agrogeneration and Amatheon Agri 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 Agrogeneration with a short position of Amatheon Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrogeneration and Amatheon Agri.
Diversification Opportunities for Agrogeneration and Amatheon Agri
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agrogeneration and Amatheon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agrogeneration and Amatheon Agri Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amatheon Agri Holding and Agrogeneration 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 Agrogeneration are associated (or correlated) with Amatheon Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amatheon Agri Holding has no effect on the direction of Agrogeneration i.e., Agrogeneration and Amatheon Agri go up and down completely randomly.
Pair Corralation between Agrogeneration and Amatheon Agri
Assuming the 90 days trading horizon Agrogeneration is expected to under-perform the Amatheon Agri. But the stock apears to be less risky and, when comparing its historical volatility, Agrogeneration is 2.68 times less risky than Amatheon Agri. The stock trades about -0.01 of its potential returns per unit of risk. The Amatheon Agri Holding is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1.80 in Amatheon Agri Holding on October 25, 2024 and sell it today you would earn a total of 1.10 from holding Amatheon Agri Holding or generate 61.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrogeneration vs. Amatheon Agri Holding
Performance |
| Timeline |
| Agrogeneration |
| Amatheon Agri Holding |
Agrogeneration and Amatheon Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrogeneration and Amatheon Agri
The main advantage of trading using opposite Agrogeneration and Amatheon Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrogeneration position performs unexpectedly, Amatheon Agri 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 Amatheon Agri will offset losses from the drop in Amatheon Agri's long position.| Agrogeneration vs. Acheter Louer | Agrogeneration vs. Avenir Telecom SA | Agrogeneration vs. DBT SA | Agrogeneration vs. Europlasma SA |
| Amatheon Agri vs. Agrogeneration | Amatheon Agri vs. Delfingen | Amatheon Agri vs. ST Dupont | Amatheon Agri vs. Burelle SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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