Correlation Between Austin Engineering and Ag Growth
Can any of the company-specific risk be diversified away by investing in both Austin Engineering and Ag Growth 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 Austin Engineering and Ag Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austin Engineering Limited and Ag Growth International, you can compare the effects of market volatilities on Austin Engineering and Ag Growth 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 Austin Engineering with a short position of Ag Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austin Engineering and Ag Growth.
Diversification Opportunities for Austin Engineering and Ag Growth
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austin and AGGZF is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Austin Engineering Limited and Ag Growth International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ag Growth International and Austin Engineering 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 Austin Engineering Limited are associated (or correlated) with Ag Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ag Growth International has no effect on the direction of Austin Engineering i.e., Austin Engineering and Ag Growth go up and down completely randomly.
Pair Corralation between Austin Engineering and Ag Growth
If you would invest 3,430 in Ag Growth International on August 24, 2024 and sell it today you would earn a total of 362.00 from holding Ag Growth International or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austin Engineering Limited vs. Ag Growth International
Performance |
| Timeline |
| Austin Engineering |
| Ag Growth International |
Austin Engineering and Ag Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austin Engineering and Ag Growth
The main advantage of trading using opposite Austin Engineering and Ag Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austin Engineering position performs unexpectedly, Ag Growth 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 Ag Growth will offset losses from the drop in Ag Growth's long position.| Austin Engineering vs. Lion Electric Corp | Austin Engineering vs. Nikola Corp | Austin Engineering vs. Buhler Industries | Austin Engineering vs. Toyota Industries |
| Ag Growth vs. Element Solutions | Ag Growth vs. Orion Engineered Carbons | Ag Growth vs. Minerals Technologies | Ag Growth vs. Ingevity Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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