Correlation Between AGRICULTBK HADR25 and MIE HOLDINGS

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Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 and MIE HOLDINGS 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 AGRICULTBK HADR25 and MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and MIE HOLDINGS, you can compare the effects of market volatilities on AGRICULTBK HADR25 and MIE HOLDINGS 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 AGRICULTBK HADR25 with a short position of MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and MIE HOLDINGS.

Diversification Opportunities for AGRICULTBK HADR25 and MIE HOLDINGS

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between AGRICULTBK and MIE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS and AGRICULTBK HADR25 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 AGRICULTBK HADR25 YC are associated (or correlated) with MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and MIE HOLDINGS go up and down completely randomly.

Pair Corralation between AGRICULTBK HADR25 and MIE HOLDINGS

Assuming the 90 days trading horizon AGRICULTBK HADR25 is expected to generate 19.81 times less return on investment than MIE HOLDINGS. But when comparing it to its historical volatility, AGRICULTBK HADR25 YC is 27.32 times less risky than MIE HOLDINGS. It trades about 0.19 of its potential returns per unit of risk. MIE HOLDINGS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  0.05  in MIE HOLDINGS on September 12, 2024 and sell it today you would earn a total of  0.00  from holding MIE HOLDINGS or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AGRICULTBK HADR25 YC  vs.  MIE HOLDINGS

 Performance 
       Timeline  
AGRICULTBK HADR25 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGRICULTBK HADR25 reported solid returns over the last few months and may actually be approaching a breakup point.
MIE HOLDINGS 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MIE HOLDINGS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, MIE HOLDINGS exhibited solid returns over the last few months and may actually be approaching a breakup point.

AGRICULTBK HADR25 and MIE HOLDINGS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AGRICULTBK HADR25 and MIE HOLDINGS

The main advantage of trading using opposite AGRICULTBK HADR25 and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.
The idea behind AGRICULTBK HADR25 YC and MIE HOLDINGS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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