Correlation Between Agriculture Printing and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both Agriculture Printing and Fecon Mining 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 Agriculture Printing and Fecon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agriculture Printing and and Fecon Mining JSC, you can compare the effects of market volatilities on Agriculture Printing and Fecon Mining 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 Agriculture Printing with a short position of Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agriculture Printing and Fecon Mining.
Diversification Opportunities for Agriculture Printing and Fecon Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agriculture and Fecon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Agriculture Printing and and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining JSC and Agriculture Printing 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 Agriculture Printing and are associated (or correlated) with Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of Agriculture Printing i.e., Agriculture Printing and Fecon Mining go up and down completely randomly.
Pair Corralation between Agriculture Printing and Fecon Mining
Assuming the 90 days trading horizon Agriculture Printing and is expected to generate 0.94 times more return on investment than Fecon Mining. However, Agriculture Printing and is 1.07 times less risky than Fecon Mining. It trades about 0.09 of its potential returns per unit of risk. Fecon Mining JSC is currently generating about -0.23 per unit of risk. If you would invest 5,360,000 in Agriculture Printing and on September 2, 2024 and sell it today you would earn a total of 120,000 from holding Agriculture Printing and or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agriculture Printing and vs. Fecon Mining JSC
Performance |
| Timeline |
| Agriculture Printing and |
| Fecon Mining JSC |
Agriculture Printing and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agriculture Printing and Fecon Mining
The main advantage of trading using opposite Agriculture Printing and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agriculture Printing position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining's long position.| Agriculture Printing vs. FIT INVEST JSC | Agriculture Printing vs. Damsan JSC | Agriculture Printing vs. An Phat Plastic | Agriculture Printing vs. Alphanam ME |
| Fecon Mining vs. Ha Long Investment | Fecon Mining vs. Everland Investment JSC | Fecon Mining vs. Hochiminh City Metal | Fecon Mining vs. Vu Dang 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 CEOs Directory module to screen CEOs from public companies around the world.
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