Correlation Between AGRICUL BK and Teladoc
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Teladoc 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 AGRICUL BK and Teladoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and Teladoc, you can compare the effects of market volatilities on AGRICUL BK and Teladoc 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 AGRICUL BK with a short position of Teladoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Teladoc.
Diversification Opportunities for AGRICUL BK and Teladoc
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICUL and Teladoc is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Teladoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladoc and AGRICUL BK 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 AGRICUL BK CHINA H are associated (or correlated) with Teladoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladoc has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Teladoc go up and down completely randomly.
Pair Corralation between AGRICUL BK and Teladoc
Assuming the 90 days trading horizon AGRICUL BK is expected to generate 6.68 times less return on investment than Teladoc. But when comparing it to its historical volatility, AGRICUL BK CHINA H is 2.67 times less risky than Teladoc. It trades about 0.11 of its potential returns per unit of risk. Teladoc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 845.00 in Teladoc on September 1, 2024 and sell it today you would earn a total of 289.00 from holding Teladoc or generate 34.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Teladoc
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Teladoc |
AGRICUL BK and Teladoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Teladoc
The main advantage of trading using opposite AGRICUL BK and Teladoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Teladoc 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 Teladoc will offset losses from the drop in Teladoc's long position.| AGRICUL BK vs. BE Semiconductor Industries | AGRICUL BK vs. NXP Semiconductors NV | AGRICUL BK vs. Luckin Coffee | AGRICUL BK vs. ELMOS SEMICONDUCTOR |
| Teladoc vs. Superior Plus Corp | Teladoc vs. NMI Holdings | Teladoc vs. Origin Agritech | Teladoc vs. SIVERS SEMICONDUCTORS AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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