Correlation Between AGRICULTBK HADR/25 and INPOST SA
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and INPOST SA 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 INPOST SA 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 INPOST SA EO, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and INPOST SA 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 INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and INPOST SA.
Diversification Opportunities for AGRICULTBK HADR/25 and INPOST SA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICULTBK and INPOST is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO 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 INPOST SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPOST SA EO has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and INPOST SA go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and INPOST SA
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.33 times more return on investment than INPOST SA. However, AGRICULTBK HADR/25 is 1.33 times more volatile than INPOST SA EO. It trades about -0.06 of its potential returns per unit of risk. INPOST SA EO is currently generating about -0.25 per unit of risk. If you would invest 1,300 in AGRICULTBK HADR25 YC on November 5, 2024 and sell it today you would lose (30.00) from holding AGRICULTBK HADR25 YC or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. INPOST SA EO
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| INPOST SA EO |
AGRICULTBK HADR/25 and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and INPOST SA
The main advantage of trading using opposite AGRICULTBK HADR/25 and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, INPOST SA 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 INPOST SA will offset losses from the drop in INPOST SA's long position.| AGRICULTBK HADR/25 vs. Applied Materials | AGRICULTBK HADR/25 vs. Plastic Omnium | AGRICULTBK HADR/25 vs. MidCap Financial Investment | AGRICULTBK HADR/25 vs. CDL INVESTMENT |
| INPOST SA vs. PLANT VEDA FOODS | INPOST SA vs. United Natural Foods | INPOST SA vs. Applied Materials | INPOST SA vs. VULCAN MATERIALS |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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