Correlation Between Tat Techno and Agrify Corp
Can any of the company-specific risk be diversified away by investing in both Tat Techno and Agrify Corp 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 Tat Techno and Agrify Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and Agrify Corp, you can compare the effects of market volatilities on Tat Techno and Agrify Corp 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 Tat Techno with a short position of Agrify Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and Agrify Corp.
Diversification Opportunities for Tat Techno and Agrify Corp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tat and Agrify is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp and Tat Techno 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 Tat Techno are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of Tat Techno i.e., Tat Techno and Agrify Corp go up and down completely randomly.
Pair Corralation between Tat Techno and Agrify Corp
Given the investment horizon of 90 days Tat Techno is expected to generate 0.28 times more return on investment than Agrify Corp. However, Tat Techno is 3.54 times less risky than Agrify Corp. It trades about 0.11 of its potential returns per unit of risk. Agrify Corp is currently generating about 0.02 per unit of risk. If you would invest 599.00 in Tat Techno on January 6, 2025 and sell it today you would earn a total of 1,965 from holding Tat Techno or generate 328.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tat Techno vs. Agrify Corp
Performance |
| Timeline |
| Tat Techno |
| Agrify Corp |
Tat Techno and Agrify Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and Agrify Corp
The main advantage of trading using opposite Tat Techno and Agrify Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno position performs unexpectedly, Agrify Corp 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 Agrify Corp will offset losses from the drop in Agrify Corp's long position.| Tat Techno vs. Innovative Solutions and | Tat Techno vs. CPI Aerostructures | Tat Techno vs. Air Industries Group | Tat Techno vs. Ballistic Recovery Systems |
| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |