Correlation Between Agro Tech and Home First
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By analyzing existing cross correlation between Agro Tech Foods and Home First Finance, you can compare the effects of market volatilities on Agro Tech and Home First 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 Agro Tech with a short position of Home First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Tech and Home First.
Diversification Opportunities for Agro Tech and Home First
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agro and Home is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Agro Tech Foods and Home First Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home First Finance and Agro Tech 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 Agro Tech Foods are associated (or correlated) with Home First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home First Finance has no effect on the direction of Agro Tech i.e., Agro Tech and Home First go up and down completely randomly.
Pair Corralation between Agro Tech and Home First
Assuming the 90 days trading horizon Agro Tech Foods is expected to generate 1.53 times more return on investment than Home First. However, Agro Tech is 1.53 times more volatile than Home First Finance. It trades about -0.03 of its potential returns per unit of risk. Home First Finance is currently generating about -0.21 per unit of risk. If you would invest 94,995 in Agro Tech Foods on August 31, 2024 and sell it today you would lose (2,895) from holding Agro Tech Foods or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agro Tech Foods vs. Home First Finance
Performance |
| Timeline |
| Agro Tech Foods |
| Home First Finance |
Agro Tech and Home First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Tech and Home First
The main advantage of trading using opposite Agro Tech and Home First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Tech position performs unexpectedly, Home First 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 Home First will offset losses from the drop in Home First's long position.| Agro Tech vs. MRF Limited | Agro Tech vs. Bosch Limited | Agro Tech vs. Bajaj Holdings Investment | Agro Tech vs. Vardhman Holdings Limited |
| Home First vs. Agro Tech Foods | Home First vs. Bajaj Holdings Investment | Home First vs. ILFS Investment Managers | Home First vs. SIL Investments Limited |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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