Correlation Between Agrify Corp and Bouygues

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

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

Diversification Opportunities for Agrify Corp and Bouygues

-0.54

Correlation Coefficient

Agrify Corp  Bouygues

Excellent diversification

The 3 months correlation between Agrify and Bouygues is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Bouygues SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bouygues SA and Agrify Corp 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 Agrify Corp are associated (or correlated) with Bouygues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bouygues SA has no effect on the direction of Agrify Corp i.e., Agrify Corp and Bouygues go up and down completely randomly.

Pair Corralation between Agrify Corp and Bouygues

Given the investment horizon of 90 days Agrify Corp is expected to under-perform the Bouygues. In addition to that, Agrify Corp is 3.67 times more volatile than Bouygues SA. It trades about -0.04 of its total potential returns per unit of risk. Bouygues SA is currently generating about 0.23 per unit of volatility. If you would invest  2,956  in Bouygues SA on December 30, 2024 and sell it today you would earn a total of  884.00  from holding Bouygues SA or generate 29.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	91.94%
Values	Daily Returns

Agrify Corp  vs.  Bouygues SA

Agrify Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agrify Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bouygues SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bouygues SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bouygues reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agrify Corp and Bouygues

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

The idea behind Agrify Corp and Bouygues SA 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.