Correlation Between AGRICUL BK and Check-Cap
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Check-Cap 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 Check-Cap 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 Check Cap, you can compare the effects of market volatilities on AGRICUL BK and Check-Cap 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 Check-Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Check-Cap.
Diversification Opportunities for AGRICUL BK and Check-Cap
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and Check-Cap is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap 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 Check-Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Check-Cap go up and down completely randomly.
Pair Corralation between AGRICUL BK and Check-Cap
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 0.37 times more return on investment than Check-Cap. However, AGRICUL BK CHINA H is 2.67 times less risky than Check-Cap. It trades about 0.01 of its potential returns per unit of risk. Check Cap is currently generating about -0.27 per unit of risk. If you would invest 46.00 in AGRICUL BK CHINA H on August 26, 2024 and sell it today you would earn a total of 0.00 from holding AGRICUL BK CHINA H or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Check Cap
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Check Cap |
AGRICUL BK and Check-Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Check-Cap
The main advantage of trading using opposite AGRICUL BK and Check-Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Check-Cap 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 Check-Cap will offset losses from the drop in Check-Cap's long position.The idea behind AGRICUL BK CHINA H and Check Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Check-Cap vs. 24SEVENOFFICE GROUP AB | Check-Cap vs. INVITATION HOMES DL | Check-Cap vs. Neinor Homes SA | Check-Cap vs. MHP Hotel AG |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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