Correlation Between AGRICULTBK HADR/25 and H FARM
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and H FARM 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 HADR/25 and H FARM 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 H FARM SPA, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and H FARM 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 HADR/25 with a short position of H FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and H FARM.
Diversification Opportunities for AGRICULTBK HADR/25 and H FARM
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICULTBK and 5JQ is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and H FARM SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H FARM SPA and AGRICULTBK HADR/25 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 H FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H FARM SPA has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and H FARM go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and H FARM
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 0.44 times more return on investment than H FARM. However, AGRICULTBK HADR25 YC is 2.26 times less risky than H FARM. It trades about 0.06 of its potential returns per unit of risk. H FARM SPA is currently generating about 0.0 per unit of risk. If you would invest 634.00 in AGRICULTBK HADR25 YC on September 3, 2024 and sell it today you would earn a total of 486.00 from holding AGRICULTBK HADR25 YC or generate 76.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. H FARM SPA
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| H FARM SPA |
AGRICULTBK HADR/25 and H FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and H FARM
The main advantage of trading using opposite AGRICULTBK HADR/25 and H FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, H FARM 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 H FARM will offset losses from the drop in H FARM's long position.| AGRICULTBK HADR/25 vs. Kaiser Aluminum | AGRICULTBK HADR/25 vs. AUST AGRICULTURAL | AGRICULTBK HADR/25 vs. DAIRY FARM INTL | AGRICULTBK HADR/25 vs. Lion One Metals |
| H FARM vs. ADRIATIC METALS LS 013355 | H FARM vs. GALENA MINING LTD | H FARM vs. Sunny Optical Technology | H FARM vs. GREENX METALS LTD |
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.
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