Correlation Between Inpro SA and Agroton Public
Can any of the company-specific risk be diversified away by investing in both Inpro SA 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 Inpro SA and Agroton Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpro SA and Agroton Public, you can compare the effects of market volatilities on Inpro SA 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 Inpro SA with a short position of Agroton Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpro SA and Agroton Public.
Diversification Opportunities for Inpro SA and Agroton Public
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inpro and Agroton is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Inpro SA and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public and Inpro SA 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 Inpro SA 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 Inpro SA i.e., Inpro SA and Agroton Public go up and down completely randomly.
Pair Corralation between Inpro SA and Agroton Public
Assuming the 90 days trading horizon Inpro SA is expected to under-perform the Agroton Public. But the stock apears to be less risky and, when comparing its historical volatility, Inpro SA is 1.5 times less risky than Agroton Public. The stock trades about -0.12 of its potential returns per unit of risk. The Agroton Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Agroton Public on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Agroton Public or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inpro SA vs. Agroton Public
Performance |
| Timeline |
| Inpro SA |
| Agroton Public |
Inpro SA and Agroton Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpro SA and Agroton Public
The main advantage of trading using opposite Inpro SA and Agroton Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpro SA 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.| Inpro SA vs. Santander Bank Polska | Inpro SA vs. Noble Financials SA | Inpro SA vs. MW Trade SA | Inpro SA vs. BNP Paribas Bank |
| Agroton Public vs. Astarta Holding NV | Agroton Public vs. Asseco Business Solutions | Agroton Public vs. Detalion Games SA | Agroton Public vs. Kogeneracja 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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