Correlation Between AGRICUL BK and Corticeira Amorim
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Corticeira Amorim 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 Corticeira Amorim 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 Corticeira Amorim SGPS, you can compare the effects of market volatilities on AGRICUL BK and Corticeira Amorim 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 Corticeira Amorim. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Corticeira Amorim.
Diversification Opportunities for AGRICUL BK and Corticeira Amorim
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and Corticeira is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Corticeira Amorim SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corticeira Amorim SGPS 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 Corticeira Amorim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corticeira Amorim SGPS has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Corticeira Amorim go up and down completely randomly.
Pair Corralation between AGRICUL BK and Corticeira Amorim
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 1.98 times more return on investment than Corticeira Amorim. However, AGRICUL BK is 1.98 times more volatile than Corticeira Amorim SGPS. It trades about 0.06 of its potential returns per unit of risk. Corticeira Amorim SGPS is currently generating about 0.02 per unit of risk. If you would invest 46.00 in AGRICUL BK CHINA H on August 30, 2024 and sell it today you would earn a total of 1.00 from holding AGRICUL BK CHINA H or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Corticeira Amorim SGPS
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Corticeira Amorim SGPS |
AGRICUL BK and Corticeira Amorim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Corticeira Amorim
The main advantage of trading using opposite AGRICUL BK and Corticeira Amorim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Corticeira Amorim 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 Corticeira Amorim will offset losses from the drop in Corticeira Amorim's long position.| AGRICUL BK vs. Apple Inc | AGRICUL BK vs. Apple Inc | AGRICUL BK vs. Superior Plus Corp | AGRICUL BK vs. SIVERS SEMICONDUCTORS AB |
| Corticeira Amorim vs. Svenska Cellulosa Aktiebolaget | Corticeira Amorim vs. Superior Plus Corp | Corticeira Amorim vs. NMI Holdings | Corticeira Amorim 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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