Correlation Between MIWA SUGAR and AGAPE GLOBAL
Can any of the company-specific risk be diversified away by investing in both MIWA SUGAR and AGAPE GLOBAL 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 MIWA SUGAR and AGAPE GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIWA SUGAR LIMITED and AGAPE GLOBAL INVESTMENTS, you can compare the effects of market volatilities on MIWA SUGAR and AGAPE GLOBAL 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 MIWA SUGAR with a short position of AGAPE GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIWA SUGAR and AGAPE GLOBAL.
Diversification Opportunities for MIWA SUGAR and AGAPE GLOBAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MIWA and AGAPE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MIWA SUGAR LIMITED and AGAPE GLOBAL INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGAPE GLOBAL INVESTMENTS and MIWA SUGAR 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 MIWA SUGAR LIMITED are associated (or correlated) with AGAPE GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGAPE GLOBAL INVESTMENTS has no effect on the direction of MIWA SUGAR i.e., MIWA SUGAR and AGAPE GLOBAL go up and down completely randomly.
Pair Corralation between MIWA SUGAR and AGAPE GLOBAL
Assuming the 90 days trading horizon MIWA SUGAR LIMITED is expected to generate 3.26 times more return on investment than AGAPE GLOBAL. However, MIWA SUGAR is 3.26 times more volatile than AGAPE GLOBAL INVESTMENTS. It trades about 0.01 of its potential returns per unit of risk. AGAPE GLOBAL INVESTMENTS is currently generating about -0.07 per unit of risk. If you would invest 30.00 in MIWA SUGAR LIMITED on August 27, 2024 and sell it today you would lose (6.00) from holding MIWA SUGAR LIMITED or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 68.44% |
| Values | Daily Returns |
MIWA SUGAR LIMITED vs. AGAPE GLOBAL INVESTMENTS
Performance |
| Timeline |
| MIWA SUGAR LIMITED |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| AGAPE GLOBAL INVESTMENTS |
MIWA SUGAR and AGAPE GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIWA SUGAR and AGAPE GLOBAL
The main advantage of trading using opposite MIWA SUGAR and AGAPE GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIWA SUGAR position performs unexpectedly, AGAPE GLOBAL 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 AGAPE GLOBAL will offset losses from the drop in AGAPE GLOBAL's long position.| MIWA SUGAR vs. AGAPE GLOBAL INVESTMENTS | MIWA SUGAR vs. QUALITY BEVERAGES LTD | MIWA SUGAR vs. AFRICA CLEAN ENERGY | MIWA SUGAR vs. ASTORIA INVESTMENT LTD |
| AGAPE GLOBAL vs. MCB GROUP LTD | AGAPE GLOBAL vs. LOTTOTECH LTD | AGAPE GLOBAL vs. NEW MAURITIUS HOTELS | AGAPE GLOBAL vs. MIWA SUGAR LIMITED |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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