Correlation Between Adgar Investments and Fantasy Network

Can any of the company-specific risk be diversified away by investing in both Adgar Investments and Fantasy Network 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 Adgar Investments and Fantasy Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adgar Investments and and Fantasy Network, you can compare the effects of market volatilities on Adgar Investments and Fantasy Network 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 Adgar Investments with a short position of Fantasy Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adgar Investments and Fantasy Network.

Diversification Opportunities for Adgar Investments and Fantasy Network

-0.85

Correlation Coefficient

Adgar Investments  Fantasy Network

Pay attention - limited upside

The 3 months correlation between Adgar and Fantasy is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Adgar Investments and and Fantasy Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantasy Network and Adgar Investments 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 Adgar Investments and are associated (or correlated) with Fantasy Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantasy Network has no effect on the direction of Adgar Investments i.e., Adgar Investments and Fantasy Network go up and down completely randomly.

Pair Corralation between Adgar Investments and Fantasy Network

Assuming the 90 days trading horizon Adgar Investments and is expected to generate 0.52 times more return on investment than Fantasy Network. However, Adgar Investments and is 1.91 times less risky than Fantasy Network. It trades about 0.03 of its potential returns per unit of risk. Fantasy Network is currently generating about -0.07 per unit of risk. If you would invest  50,138  in Adgar Investments and on September 14, 2024 and sell it today you would earn a total of  7,382  from holding Adgar Investments and or generate 14.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.74%
Values	Daily Returns

Adgar Investments and  vs.  Fantasy Network

Adgar Investments

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Adgar Investments and are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Adgar Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Fantasy Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fantasy Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Adgar Investments and Fantasy Network

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

The idea behind Adgar Investments and and Fantasy Network 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.