Correlation Between Hoffmann Green and Agripower France
Can any of the company-specific risk be diversified away by investing in both Hoffmann Green and Agripower France 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 Hoffmann Green and Agripower France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoffmann Green Cement and Agripower France Sa, you can compare the effects of market volatilities on Hoffmann Green and Agripower France 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 Hoffmann Green with a short position of Agripower France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoffmann Green and Agripower France.
Diversification Opportunities for Hoffmann Green and Agripower France
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hoffmann and Agripower is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hoffmann Green Cement and Agripower France Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agripower France and Hoffmann Green 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 Hoffmann Green Cement are associated (or correlated) with Agripower France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agripower France has no effect on the direction of Hoffmann Green i.e., Hoffmann Green and Agripower France go up and down completely randomly.
Pair Corralation between Hoffmann Green and Agripower France
Assuming the 90 days trading horizon Hoffmann Green Cement is expected to under-perform the Agripower France. But the stock apears to be less risky and, when comparing its historical volatility, Hoffmann Green Cement is 1.24 times less risky than Agripower France. The stock trades about -0.26 of its potential returns per unit of risk. The Agripower France Sa is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 114.00 in Agripower France Sa on August 28, 2024 and sell it today you would lose (24.00) from holding Agripower France Sa or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Hoffmann Green Cement vs. Agripower France Sa
Performance |
| Timeline |
| Hoffmann Green Cement |
| Agripower France |
Hoffmann Green and Agripower France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoffmann Green and Agripower France
The main advantage of trading using opposite Hoffmann Green and Agripower France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoffmann Green position performs unexpectedly, Agripower France 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 Agripower France will offset losses from the drop in Agripower France's long position.| Hoffmann Green vs. Carbios | Hoffmann Green vs. Voltalia SA | Hoffmann Green vs. Neoen SA | Hoffmann Green vs. Kalray SA |
| Agripower France vs. Glob Bioenergi | Agripower France vs. BIO UV Group | Agripower France vs. Voltalia SA | Agripower France vs. Hoffmann Green Cement |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |