Correlation Between Chrysalis Investments and Argentex Group
Can any of the company-specific risk be diversified away by investing in both Chrysalis Investments and Argentex Group 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 Chrysalis Investments and Argentex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chrysalis Investments and Argentex Group PLC, you can compare the effects of market volatilities on Chrysalis Investments and Argentex Group 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 Chrysalis Investments with a short position of Argentex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chrysalis Investments and Argentex Group.
Diversification Opportunities for Chrysalis Investments and Argentex Group
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chrysalis and Argentex is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chrysalis Investments and Argentex Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentex Group PLC and Chrysalis Investments 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 Chrysalis Investments are associated (or correlated) with Argentex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentex Group PLC has no effect on the direction of Chrysalis Investments i.e., Chrysalis Investments and Argentex Group go up and down completely randomly.
Pair Corralation between Chrysalis Investments and Argentex Group
Assuming the 90 days trading horizon Chrysalis Investments is expected to generate 0.41 times more return on investment than Argentex Group. However, Chrysalis Investments is 2.45 times less risky than Argentex Group. It trades about 0.1 of its potential returns per unit of risk. Argentex Group PLC is currently generating about -0.02 per unit of risk. If you would invest 7,900 in Chrysalis Investments on September 2, 2024 and sell it today you would earn a total of 1,730 from holding Chrysalis Investments or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chrysalis Investments vs. Argentex Group PLC
Performance |
| Timeline |
| Chrysalis Investments |
| Argentex Group PLC |
Chrysalis Investments and Argentex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chrysalis Investments and Argentex Group
The main advantage of trading using opposite Chrysalis Investments and Argentex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chrysalis Investments position performs unexpectedly, Argentex Group 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 Argentex Group will offset losses from the drop in Argentex Group's long position.| Chrysalis Investments vs. Trainline Plc | Chrysalis Investments vs. Check Point Software | Chrysalis Investments vs. Infrastrutture Wireless Italiane | Chrysalis Investments vs. Auction Technology Group |
| Argentex Group vs. Toyota Motor Corp | Argentex Group vs. SoftBank Group Corp | Argentex Group vs. OTP Bank Nyrt | Argentex Group vs. Las Vegas Sands |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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