Correlation Between AGRICUL BK and ASSGENERALI ADR
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and ASSGENERALI ADR 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 ASSGENERALI ADR 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 ASSGENERALI ADR 12EO, you can compare the effects of market volatilities on AGRICUL BK and ASSGENERALI ADR 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 ASSGENERALI ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and ASSGENERALI ADR.
Diversification Opportunities for AGRICUL BK and ASSGENERALI ADR
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICUL and ASSGENERALI is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and ASSGENERALI ADR 12EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSGENERALI ADR 12EO 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 ASSGENERALI ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSGENERALI ADR 12EO has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and ASSGENERALI ADR go up and down completely randomly.
Pair Corralation between AGRICUL BK and ASSGENERALI ADR
Assuming the 90 days trading horizon AGRICUL BK is expected to generate 1.94 times less return on investment than ASSGENERALI ADR. In addition to that, AGRICUL BK is 1.28 times more volatile than ASSGENERALI ADR 12EO. It trades about 0.11 of its total potential returns per unit of risk. ASSGENERALI ADR 12EO is currently generating about 0.27 per unit of volatility. If you would invest 1,250 in ASSGENERALI ADR 12EO on September 1, 2024 and sell it today you would earn a total of 120.00 from holding ASSGENERALI ADR 12EO or generate 9.6% 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. ASSGENERALI ADR 12EO
Performance |
| Timeline |
| AGRICUL BK CHINA |
| ASSGENERALI ADR 12EO |
AGRICUL BK and ASSGENERALI ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and ASSGENERALI ADR
The main advantage of trading using opposite AGRICUL BK and ASSGENERALI ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, ASSGENERALI ADR 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 ASSGENERALI ADR will offset losses from the drop in ASSGENERALI ADR'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 |
| ASSGENERALI ADR vs. NN Group NV | ASSGENERALI ADR vs. Superior Plus Corp | ASSGENERALI ADR vs. Origin Agritech | ASSGENERALI ADR vs. Identiv |
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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