Correlation Between Keepers Holdings and AgriNurture
Can any of the company-specific risk be diversified away by investing in both Keepers Holdings and AgriNurture 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 Keepers Holdings and AgriNurture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keepers Holdings and AgriNurture, you can compare the effects of market volatilities on Keepers Holdings and AgriNurture 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 Keepers Holdings with a short position of AgriNurture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keepers Holdings and AgriNurture.
Diversification Opportunities for Keepers Holdings and AgriNurture
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keepers and AgriNurture is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Keepers Holdings and AgriNurture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriNurture and Keepers Holdings 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 Keepers Holdings are associated (or correlated) with AgriNurture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriNurture has no effect on the direction of Keepers Holdings i.e., Keepers Holdings and AgriNurture go up and down completely randomly.
Pair Corralation between Keepers Holdings and AgriNurture
Assuming the 90 days trading horizon Keepers Holdings is expected to generate 0.38 times more return on investment than AgriNurture. However, Keepers Holdings is 2.61 times less risky than AgriNurture. It trades about 0.1 of its potential returns per unit of risk. AgriNurture is currently generating about -0.12 per unit of risk. If you would invest 136.00 in Keepers Holdings on August 29, 2024 and sell it today you would earn a total of 70.00 from holding Keepers Holdings or generate 51.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keepers Holdings vs. AgriNurture
Performance |
| Timeline |
| Keepers Holdings |
| AgriNurture |
Keepers Holdings and AgriNurture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keepers Holdings and AgriNurture
The main advantage of trading using opposite Keepers Holdings and AgriNurture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keepers Holdings position performs unexpectedly, AgriNurture 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 AgriNurture will offset losses from the drop in AgriNurture's long position.| Keepers Holdings vs. Cosco Capital | Keepers Holdings vs. AllDay Marts | Keepers Holdings vs. Balai Ni Fruitas |
| AgriNurture vs. Lepanto Consolidated Mining | AgriNurture vs. Concepcion Industrial Corp | AgriNurture vs. Jollibee Foods Corp | AgriNurture vs. Metro Retail Stores |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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