Correlation Between Sherborne Investors and Argentex Group
Can any of the company-specific risk be diversified away by investing in both Sherborne Investors and Argentex 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 Sherborne Investors and Argentex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sherborne Investors Guernsey and Argentex Group PLC, you can compare the effects of market volatilities on Sherborne Investors and Argentex 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 Sherborne Investors with a short position of Argentex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherborne Investors and Argentex Group.
Diversification Opportunities for Sherborne Investors and Argentex Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sherborne and Argentex is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sherborne Investors Guernsey and Argentex Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentex Group PLC and Sherborne Investors 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 Sherborne Investors Guernsey are associated (or correlated) with Argentex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentex Group PLC has no effect on the direction of Sherborne Investors i.e., Sherborne Investors and Argentex Group go up and down completely randomly.
Pair Corralation between Sherborne Investors and Argentex Group
Assuming the 90 days trading horizon Sherborne Investors Guernsey is expected to generate 0.26 times more return on investment than Argentex Group. However, Sherborne Investors Guernsey is 3.78 times less risky than Argentex Group. It trades about 0.01 of its potential returns per unit of risk. Argentex Group PLC is currently generating about -0.06 per unit of risk. If you would invest 5,204 in Sherborne Investors Guernsey on August 31, 2024 and sell it today you would lose (4.00) from holding Sherborne Investors Guernsey or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sherborne Investors Guernsey vs. Argentex Group PLC
Performance |
| Timeline |
| Sherborne Investors |
| Argentex Group PLC |
Sherborne Investors and Argentex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sherborne Investors and Argentex Group
The main advantage of trading using opposite Sherborne Investors and Argentex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sherborne Investors position performs unexpectedly, Argentex 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 Argentex Group will offset losses from the drop in Argentex Group's long position.| Sherborne Investors vs. Applied Materials | Sherborne Investors vs. Regions Financial Corp | Sherborne Investors vs. Coor Service Management | Sherborne Investors vs. Cembra Money Bank |
| Argentex Group vs. Lendinvest PLC | Argentex Group vs. Coor Service Management | Argentex Group vs. St Galler Kantonalbank | Argentex Group vs. Molson Coors Beverage |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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