Correlation Between Sociedad Quimica and AGC
Can any of the company-specific risk be diversified away by investing in both Sociedad Quimica and AGC 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 Sociedad Quimica and AGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sociedad Quimica y and AGC Inc, you can compare the effects of market volatilities on Sociedad Quimica and AGC 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 Sociedad Quimica with a short position of AGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Quimica and AGC.
Diversification Opportunities for Sociedad Quimica and AGC
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sociedad and AGC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Quimica y and AGC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGC Inc and Sociedad Quimica 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 Sociedad Quimica y are associated (or correlated) with AGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGC Inc has no effect on the direction of Sociedad Quimica i.e., Sociedad Quimica and AGC go up and down completely randomly.
Pair Corralation between Sociedad Quimica and AGC
If you would invest 3,465 in AGC Inc on September 4, 2024 and sell it today you would earn a total of 0.00 from holding AGC Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Sociedad Quimica y vs. AGC Inc
Performance |
| Timeline |
| Sociedad Quimica y |
| AGC Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sociedad Quimica and AGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Quimica and AGC
The main advantage of trading using opposite Sociedad Quimica and AGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Quimica position performs unexpectedly, AGC 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 AGC will offset losses from the drop in AGC's long position.| Sociedad Quimica vs. Linde plc Ordinary | Sociedad Quimica vs. Air Products and | Sociedad Quimica vs. Sherwin Williams Co | Sociedad Quimica vs. Albemarle Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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