Correlation Between AGRICULTBK HADR/25 and Cross Country
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and Cross Country 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 Cross Country 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 Cross Country Healthcare, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and Cross Country.
Diversification Opportunities for AGRICULTBK HADR/25 and Cross Country
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICULTBK and Cross is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and Cross Country go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and Cross Country
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 0.62 times more return on investment than Cross Country. However, AGRICULTBK HADR25 YC is 1.6 times less risky than Cross Country. It trades about 0.11 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.08 per unit of risk. If you would invest 970.00 in AGRICULTBK HADR25 YC on September 4, 2024 and sell it today you would earn a total of 150.00 from holding AGRICULTBK HADR25 YC or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. Cross Country Healthcare
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| Cross Country Healthcare |
AGRICULTBK HADR/25 and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and Cross Country
The main advantage of trading using opposite AGRICULTBK HADR/25 and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| AGRICULTBK HADR/25 vs. Corporate Office Properties | AGRICULTBK HADR/25 vs. Infrastrutture Wireless Italiane | AGRICULTBK HADR/25 vs. NURAN WIRELESS INC | AGRICULTBK HADR/25 vs. Tianjin Capital Environmental |
| Cross Country vs. WisdomTree Investments | Cross Country vs. Australian Agricultural | Cross Country vs. AGRICULTBK HADR25 YC | Cross Country vs. Japan Asia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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