Correlation Between AGRICULTBK HADR25 and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on AGRICULTBK HADR25 and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and Federal Agricultural.
Diversification Opportunities for AGRICULTBK HADR25 and Federal Agricultural
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGRICULTBK and Federal is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and Federal Agricultural go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR25 and Federal Agricultural
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.28 times more return on investment than Federal Agricultural. However, AGRICULTBK HADR25 is 1.28 times more volatile than Federal Agricultural Mortgage. It trades about 0.11 of its potential returns per unit of risk. Federal Agricultural Mortgage is currently generating about 0.03 per unit of risk. If you would invest 694.00 in AGRICULTBK HADR25 YC on December 12, 2024 and sell it today you would earn a total of 666.00 from holding AGRICULTBK HADR25 YC or generate 95.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| AGRICULTBK HADR25 |
| Federal Agricultural |
AGRICULTBK HADR25 and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR25 and Federal Agricultural
The main advantage of trading using opposite AGRICULTBK HADR25 and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| AGRICULTBK HADR25 vs. Ming Le Sports | ||
| AGRICULTBK HADR25 vs. ANTA Sports Products | ||
| AGRICULTBK HADR25 vs. United Airlines Holdings | ||
| AGRICULTBK HADR25 vs. Aristocrat Leisure Limited |
| Federal Agricultural vs. T Mobile | ||
| Federal Agricultural vs. Mobilezone Holding AG | ||
| Federal Agricultural vs. T MOBILE US | ||
| Federal Agricultural vs. Cairo Communication SpA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |