Correlation Between Lindsay and Ag Growth
Can any of the company-specific risk be diversified away by investing in both Lindsay and Ag Growth 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 Lindsay and Ag Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindsay and Ag Growth International, you can compare the effects of market volatilities on Lindsay and Ag Growth 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 Lindsay with a short position of Ag Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindsay and Ag Growth.
Diversification Opportunities for Lindsay and Ag Growth
Significant diversification
The 3 months correlation between Lindsay and AGGZF is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lindsay and Ag Growth International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ag Growth International and Lindsay 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 Lindsay are associated (or correlated) with Ag Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ag Growth International has no effect on the direction of Lindsay i.e., Lindsay and Ag Growth go up and down completely randomly.
Pair Corralation between Lindsay and Ag Growth
Considering the 90-day investment horizon Lindsay is expected to generate 0.85 times more return on investment than Ag Growth. However, Lindsay is 1.18 times less risky than Ag Growth. It trades about 0.02 of its potential returns per unit of risk. Ag Growth International is currently generating about 0.01 per unit of risk. If you would invest 12,388 in Lindsay on August 31, 2024 and sell it today you would earn a total of 889.00 from holding Lindsay or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.84% |
| Values | Daily Returns |
Lindsay vs. Ag Growth International
Performance |
| Timeline |
| Lindsay |
| Ag Growth International |
Lindsay and Ag Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindsay and Ag Growth
The main advantage of trading using opposite Lindsay and Ag Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindsay position performs unexpectedly, Ag Growth 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 Ag Growth will offset losses from the drop in Ag Growth's long position.| Lindsay vs. Columbus McKinnon | Lindsay vs. Astec Industries | Lindsay vs. Shyft Group | Lindsay vs. AGCO Corporation |
| Ag Growth vs. First Tractor | Ag Growth vs. AmeraMex International | Ag Growth vs. Arts Way Manufacturing Co | Ag Growth vs. American Premium Water |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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