Correlation Between AGRICUL BK and AstraZeneca PLC
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and AstraZeneca PLC 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 AstraZeneca PLC 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 AstraZeneca PLC, you can compare the effects of market volatilities on AGRICUL BK and AstraZeneca PLC 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 AstraZeneca PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and AstraZeneca PLC.
Diversification Opportunities for AGRICUL BK and AstraZeneca PLC
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and AstraZeneca is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and AstraZeneca PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstraZeneca PLC 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 AstraZeneca PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstraZeneca PLC has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and AstraZeneca PLC go up and down completely randomly.
Pair Corralation between AGRICUL BK and AstraZeneca PLC
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 4.37 times more return on investment than AstraZeneca PLC. However, AGRICUL BK is 4.37 times more volatile than AstraZeneca PLC. It trades about 0.06 of its potential returns per unit of risk. AstraZeneca PLC is currently generating about 0.01 per unit of risk. If you would invest 12.00 in AGRICUL BK CHINA H on August 30, 2024 and sell it today you would earn a total of 35.00 from holding AGRICUL BK CHINA H or generate 291.67% 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. AstraZeneca PLC
Performance |
| Timeline |
| AGRICUL BK CHINA |
| AstraZeneca PLC |
AGRICUL BK and AstraZeneca PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and AstraZeneca PLC
The main advantage of trading using opposite AGRICUL BK and AstraZeneca PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, AstraZeneca PLC 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 AstraZeneca PLC will offset losses from the drop in AstraZeneca PLC'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 |
| AstraZeneca PLC vs. Johnson Johnson | AstraZeneca PLC vs. Pfizer Inc | AstraZeneca PLC vs. Amgen Inc | AstraZeneca PLC vs. General Mills |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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