Correlation Between AGRICUL BK and Biogen
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Biogen 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 Biogen 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 Biogen Inc, you can compare the effects of market volatilities on AGRICUL BK and Biogen 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 Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Biogen.
Diversification Opportunities for AGRICUL BK and Biogen
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and Biogen is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc 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 Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Biogen go up and down completely randomly.
Pair Corralation between AGRICUL BK and Biogen
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 1.21 times more return on investment than Biogen. However, AGRICUL BK is 1.21 times more volatile than Biogen Inc. It trades about 0.01 of its potential returns per unit of risk. Biogen Inc is currently generating about -0.27 per unit of risk. If you would invest 46.00 in AGRICUL BK CHINA H on August 29, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Biogen Inc
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Biogen Inc |
AGRICUL BK and Biogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Biogen
The main advantage of trading using opposite AGRICUL BK and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.| AGRICUL BK vs. Monster Beverage Corp | AGRICUL BK vs. ALGOMA STEEL GROUP | AGRICUL BK vs. ABO GROUP ENVIRONMENT | AGRICUL BK vs. RELIANCE STEEL AL |
| Biogen vs. CEOTRONICS | Biogen vs. Coor Service Management | Biogen vs. AGF Management Limited | Biogen vs. Jupiter Fund Management |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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