Correlation Between AGRICULTBK HADR25 and GigaMedia

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on AGRICULTBK HADR25 and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and GigaMedia.

Diversification Opportunities for AGRICULTBK HADR25 and GigaMedia

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between AGRICULTBK and GigaMedia is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and GigaMedia go up and down completely randomly.

Pair Corralation between AGRICULTBK HADR25 and GigaMedia

Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.71 times more return on investment than GigaMedia. However, AGRICULTBK HADR25 is 1.71 times more volatile than GigaMedia. It trades about 0.09 of its potential returns per unit of risk. GigaMedia is currently generating about 0.02 per unit of risk. If you would invest  653.00  in AGRICULTBK HADR25 YC on September 12, 2024 and sell it today you would earn a total of  547.00  from holding AGRICULTBK HADR25 YC or generate 83.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AGRICULTBK HADR25 YC  vs.  GigaMedia

 Performance 
       Timeline  
AGRICULTBK HADR25 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 13 (%) 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.
GigaMedia 

Risk-Adjusted Performance

10 of 100

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

AGRICULTBK HADR25 and GigaMedia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AGRICULTBK HADR25 and GigaMedia

The main advantage of trading using opposite AGRICULTBK HADR25 and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.
The idea behind AGRICULTBK HADR25 YC and GigaMedia 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like