Correlation Between Stagwell and ARCHER
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By analyzing existing cross correlation between Stagwell and ARCHER DANIELS MIDLAND 45, you can compare the effects of market volatilities on Stagwell and ARCHER 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 Stagwell with a short position of ARCHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and ARCHER.
Diversification Opportunities for Stagwell and ARCHER
Very good diversification
The 3 months correlation between Stagwell and ARCHER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and ARCHER DANIELS MIDLAND 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARCHER DANIELS MIDLAND and Stagwell 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 Stagwell are associated (or correlated) with ARCHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARCHER DANIELS MIDLAND has no effect on the direction of Stagwell i.e., Stagwell and ARCHER go up and down completely randomly.
Pair Corralation between Stagwell and ARCHER
Given the investment horizon of 90 days Stagwell is expected to generate 163.9 times less return on investment than ARCHER. But when comparing it to its historical volatility, Stagwell is 32.61 times less risky than ARCHER. It trades about 0.02 of its potential returns per unit of risk. ARCHER DANIELS MIDLAND 45 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,221 in ARCHER DANIELS MIDLAND 45 on September 4, 2024 and sell it today you would earn a total of 154.00 from holding ARCHER DANIELS MIDLAND 45 or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.16% |
| Values | Daily Returns |
Stagwell vs. ARCHER DANIELS MIDLAND 45
Performance |
| Timeline |
| Stagwell |
| ARCHER DANIELS MIDLAND |
Stagwell and ARCHER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and ARCHER
The main advantage of trading using opposite Stagwell and ARCHER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, ARCHER 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 ARCHER will offset losses from the drop in ARCHER's long position.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| ARCHER vs. Harmony Gold Mining | ARCHER vs. Dave Busters Entertainment | ARCHER vs. Luxfer Holdings PLC | ARCHER vs. The Mosaic |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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