Correlation Between Amatheon Agri and Lacroix Group
Can any of the company-specific risk be diversified away by investing in both Amatheon Agri and Lacroix Group 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 Amatheon Agri and Lacroix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amatheon Agri Holding and Lacroix Group SA, you can compare the effects of market volatilities on Amatheon Agri and Lacroix Group 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 Amatheon Agri with a short position of Lacroix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amatheon Agri and Lacroix Group.
Diversification Opportunities for Amatheon Agri and Lacroix Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amatheon and Lacroix is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amatheon Agri Holding and Lacroix Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lacroix Group SA and Amatheon Agri 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 Amatheon Agri Holding are associated (or correlated) with Lacroix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lacroix Group SA has no effect on the direction of Amatheon Agri i.e., Amatheon Agri and Lacroix Group go up and down completely randomly.
Pair Corralation between Amatheon Agri and Lacroix Group
Assuming the 90 days trading horizon Amatheon Agri Holding is expected to generate 8.06 times more return on investment than Lacroix Group. However, Amatheon Agri is 8.06 times more volatile than Lacroix Group SA. It trades about 0.26 of its potential returns per unit of risk. Lacroix Group SA is currently generating about -0.07 per unit of risk. If you would invest 1.80 in Amatheon Agri Holding on October 25, 2024 and sell it today you would earn a total of 1.10 from holding Amatheon Agri Holding or generate 61.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amatheon Agri Holding vs. Lacroix Group SA
Performance |
| Timeline |
| Amatheon Agri Holding |
| Lacroix Group SA |
Amatheon Agri and Lacroix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amatheon Agri and Lacroix Group
The main advantage of trading using opposite Amatheon Agri and Lacroix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amatheon Agri position performs unexpectedly, Lacroix Group 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 Lacroix Group will offset losses from the drop in Lacroix Group's long position.| Amatheon Agri vs. Agrogeneration | Amatheon Agri vs. Delfingen | Amatheon Agri vs. ST Dupont | Amatheon Agri vs. Burelle SA |
| Lacroix Group vs. Manitou BF SA | Lacroix Group vs. Jacquet Metal Service | Lacroix Group vs. Mersen SA | Lacroix Group vs. Linedata Services 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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