Correlation Between One 97 and AGI Greenpac
Can any of the company-specific risk be diversified away by investing in both One 97 and AGI Greenpac 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 One 97 and AGI Greenpac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One 97 Communications and AGI Greenpac Limited, you can compare the effects of market volatilities on One 97 and AGI Greenpac 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 One 97 with a short position of AGI Greenpac. Check out your portfolio center. Please also check ongoing floating volatility patterns of One 97 and AGI Greenpac.
Diversification Opportunities for One 97 and AGI Greenpac
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between One and AGI is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding One 97 Communications and AGI Greenpac Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGI Greenpac Limited and One 97 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 One 97 Communications are associated (or correlated) with AGI Greenpac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGI Greenpac Limited has no effect on the direction of One 97 i.e., One 97 and AGI Greenpac go up and down completely randomly.
Pair Corralation between One 97 and AGI Greenpac
Assuming the 90 days trading horizon One 97 is expected to generate 1.62 times less return on investment than AGI Greenpac. But when comparing it to its historical volatility, One 97 Communications is 1.25 times less risky than AGI Greenpac. It trades about 0.27 of its potential returns per unit of risk. AGI Greenpac Limited is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 95,475 in AGI Greenpac Limited on September 12, 2024 and sell it today you would earn a total of 26,895 from holding AGI Greenpac Limited or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One 97 Communications vs. AGI Greenpac Limited
Performance |
| Timeline |
| One 97 Communications |
| AGI Greenpac Limited |
One 97 and AGI Greenpac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One 97 and AGI Greenpac
The main advantage of trading using opposite One 97 and AGI Greenpac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One 97 position performs unexpectedly, AGI Greenpac 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 AGI Greenpac will offset losses from the drop in AGI Greenpac's long position.| One 97 vs. Reliance Industries Limited | One 97 vs. Oil Natural Gas | One 97 vs. Indian Oil | One 97 vs. HDFC Bank Limited |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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