Correlation Between GP Solutions and AGCO
Can any of the company-specific risk be diversified away by investing in both GP Solutions and AGCO 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 GP Solutions and AGCO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Solutions and AGCO Corporation, you can compare the effects of market volatilities on GP Solutions and AGCO 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 GP Solutions with a short position of AGCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Solutions and AGCO.
Diversification Opportunities for GP Solutions and AGCO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWPD and AGCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GP Solutions and AGCO Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGCO and GP Solutions 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 GP Solutions are associated (or correlated) with AGCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGCO has no effect on the direction of GP Solutions i.e., GP Solutions and AGCO go up and down completely randomly.
Pair Corralation between GP Solutions and AGCO
If you would invest 10,285 in AGCO Corporation on September 3, 2024 and sell it today you would lose (135.00) from holding AGCO Corporation or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
GP Solutions vs. AGCO Corp.
Performance |
| Timeline |
| GP Solutions |
| AGCO |
GP Solutions and AGCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Solutions and AGCO
The main advantage of trading using opposite GP Solutions and AGCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Solutions position performs unexpectedly, AGCO 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 AGCO will offset losses from the drop in AGCO's long position.| GP Solutions vs. TOMI Environmental Solutions | GP Solutions vs. SCOR PK | GP Solutions vs. HUMANA INC | GP Solutions vs. Aquagold International |
| AGCO vs. Partner Communications | AGCO vs. Merck Company | AGCO vs. Western Midstream Partners | AGCO vs. Edgewise Therapeutics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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