Correlation Between AGRICULTBK HADR/25 and ELECTRONIC ARTS
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and ELECTRONIC ARTS 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 ELECTRONIC ARTS 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 ELECTRONIC ARTS, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and ELECTRONIC ARTS 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 ELECTRONIC ARTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and ELECTRONIC ARTS.
Diversification Opportunities for AGRICULTBK HADR/25 and ELECTRONIC ARTS
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICULTBK and ELECTRONIC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and ELECTRONIC ARTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELECTRONIC ARTS 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 ELECTRONIC ARTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELECTRONIC ARTS has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and ELECTRONIC ARTS go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and ELECTRONIC ARTS
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.63 times more return on investment than ELECTRONIC ARTS. However, AGRICULTBK HADR/25 is 1.63 times more volatile than ELECTRONIC ARTS. It trades about 0.09 of its potential returns per unit of risk. ELECTRONIC ARTS is currently generating about -0.01 per unit of risk. If you would invest 784.00 in AGRICULTBK HADR25 YC on November 3, 2024 and sell it today you would earn a total of 486.00 from holding AGRICULTBK HADR25 YC or generate 61.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. ELECTRONIC ARTS
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| ELECTRONIC ARTS |
AGRICULTBK HADR/25 and ELECTRONIC ARTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and ELECTRONIC ARTS
The main advantage of trading using opposite AGRICULTBK HADR/25 and ELECTRONIC ARTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, ELECTRONIC ARTS 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 ELECTRONIC ARTS will offset losses from the drop in ELECTRONIC ARTS's long position.| AGRICULTBK HADR/25 vs. MUTUIONLINE | AGRICULTBK HADR/25 vs. Eastman Chemical | AGRICULTBK HADR/25 vs. CHEMICAL INDUSTRIES | AGRICULTBK HADR/25 vs. Soken Chemical Engineering |
| ELECTRONIC ARTS vs. US Physical Therapy | ELECTRONIC ARTS vs. MPH Health Care | ELECTRONIC ARTS vs. ALBIS LEASING AG | ELECTRONIC ARTS vs. FIRST SHIP LEASE |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |