Correlation Between Wilmar International and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both Wilmar International and AgriFORCE Growing 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 Wilmar International and AgriFORCE Growing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmar International and AgriFORCE Growing Systems, you can compare the effects of market volatilities on Wilmar International and AgriFORCE Growing 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 Wilmar International with a short position of AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmar International and AgriFORCE Growing.
Diversification Opportunities for Wilmar International and AgriFORCE Growing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wilmar and AgriFORCE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wilmar International and AgriFORCE Growing Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriFORCE Growing Systems and Wilmar International 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 Wilmar International are associated (or correlated) with AgriFORCE Growing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriFORCE Growing Systems has no effect on the direction of Wilmar International i.e., Wilmar International and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between Wilmar International and AgriFORCE Growing
If you would invest 2,270 in Wilmar International on November 4, 2024 and sell it today you would earn a total of 65.00 from holding Wilmar International or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Wilmar International vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| Wilmar International |
| AgriFORCE Growing Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wilmar International and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmar International and AgriFORCE Growing
The main advantage of trading using opposite Wilmar International and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmar International position performs unexpectedly, AgriFORCE Growing 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 AgriFORCE Growing will offset losses from the drop in AgriFORCE Growing's long position.| Wilmar International vs. Wilmar International Limited | Wilmar International vs. Wesfarmers Ltd ADR | Wilmar International vs. United Overseas Bank | Wilmar International vs. Kerry Group PLC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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