Correlation Between AGRICUL BK and Big Yellow
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Big Yellow 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 Big Yellow 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 Big Yellow Group, you can compare the effects of market volatilities on AGRICUL BK and Big Yellow 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 Big Yellow. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Big Yellow.
Diversification Opportunities for AGRICUL BK and Big Yellow
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and Big is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Big Yellow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Yellow Group 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 Big Yellow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Yellow Group has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Big Yellow go up and down completely randomly.
Pair Corralation between AGRICUL BK and Big Yellow
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 1.6 times more return on investment than Big Yellow. However, AGRICUL BK is 1.6 times more volatile than Big Yellow Group. It trades about 0.08 of its potential returns per unit of risk. Big Yellow Group is currently generating about -0.14 per unit of risk. If you would invest 38.00 in AGRICUL BK CHINA H on August 31, 2024 and sell it today you would earn a total of 8.00 from holding AGRICUL BK CHINA H or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Big Yellow Group
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Big Yellow Group |
AGRICUL BK and Big Yellow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Big Yellow
The main advantage of trading using opposite AGRICUL BK and Big Yellow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Big Yellow 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 Big Yellow will offset losses from the drop in Big Yellow's long position.| AGRICUL BK vs. Check Point Software | AGRICUL BK vs. Verizon Communications | AGRICUL BK vs. CPU SOFTWAREHOUSE | AGRICUL BK vs. Ribbon Communications |
| Big Yellow vs. Sims Metal Management | Big Yellow vs. Playa Hotels Resorts | Big Yellow vs. Coor Service Management | Big Yellow vs. Perdoceo Education |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |