Correlation Between An Phat and Agriculture Printing

Can any of the company-specific risk be diversified away by investing in both An Phat and Agriculture Printing 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 An Phat and Agriculture Printing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between An Phat Plastic and Agriculture Printing and, you can compare the effects of market volatilities on An Phat and Agriculture Printing 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 An Phat with a short position of Agriculture Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Agriculture Printing.

Diversification Opportunities for An Phat and Agriculture Printing

-0.27

Correlation Coefficient

An Phat  Agriculture Printing

Very good diversification

The 3 months correlation between AAA and Agriculture is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Agriculture Printing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Printing and and An Phat 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 An Phat Plastic are associated (or correlated) with Agriculture Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Printing and has no effect on the direction of An Phat i.e., An Phat and Agriculture Printing go up and down completely randomly.

Pair Corralation between An Phat and Agriculture Printing

Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.54 times more return on investment than Agriculture Printing. However, An Phat Plastic is 1.84 times less risky than Agriculture Printing. It trades about 0.15 of its potential returns per unit of risk. Agriculture Printing and is currently generating about 0.03 per unit of risk. If you would invest  827,000  in An Phat Plastic on September 19, 2024 and sell it today you would earn a total of  27,000  from holding An Phat Plastic or generate 3.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	77.27%
Values	Daily Returns

An Phat Plastic  vs.  Agriculture Printing and

An Phat Plastic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days An Phat Plastic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Agriculture Printing and

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Agriculture Printing and are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Agriculture Printing is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with An Phat and Agriculture Printing

The main advantage of trading using opposite An Phat and Agriculture Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Agriculture Printing 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 Agriculture Printing will offset losses from the drop in Agriculture Printing's long position.

The idea behind An Phat Plastic and Agriculture Printing and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.