Correlation Between Globe Trade and Agroton Public
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Agroton Public 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 Globe Trade and Agroton Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and Agroton Public, you can compare the effects of market volatilities on Globe Trade and Agroton Public 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 Globe Trade with a short position of Agroton Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Agroton Public.
Diversification Opportunities for Globe Trade and Agroton Public
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globe and Agroton is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public and Globe Trade 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 Globe Trade Centre are associated (or correlated) with Agroton Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agroton Public has no effect on the direction of Globe Trade i.e., Globe Trade and Agroton Public go up and down completely randomly.
Pair Corralation between Globe Trade and Agroton Public
Assuming the 90 days trading horizon Globe Trade Centre is expected to under-perform the Agroton Public. But the stock apears to be less risky and, when comparing its historical volatility, Globe Trade Centre is 2.48 times less risky than Agroton Public. The stock trades about -0.46 of its potential returns per unit of risk. The Agroton Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Agroton Public on September 14, 2024 and sell it today you would earn a total of 12.00 from holding Agroton Public or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Globe Trade Centre vs. Agroton Public
Performance |
| Timeline |
| Globe Trade Centre |
| Agroton Public |
Globe Trade and Agroton Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Agroton Public
The main advantage of trading using opposite Globe Trade and Agroton Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Agroton Public 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 Agroton Public will offset losses from the drop in Agroton Public's long position.| Globe Trade vs. Mlk Foods Public | Globe Trade vs. PZ Cormay SA | Globe Trade vs. Live Motion Games | Globe Trade vs. Play2Chill SA |
| Agroton Public vs. mBank SA | Agroton Public vs. Bank Millennium SA | Agroton Public vs. Medicalg | Agroton Public vs. Monnari Trade SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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