Correlation Between Agrify Corp and Seven I

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

By analyzing existing cross correlation between Agrify Corp and Seven i Holdings, you can compare the effects of market volatilities on Agrify Corp and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and Seven I.

Diversification Opportunities for Agrify Corp and Seven I

0.49

Correlation Coefficient

Agrify Corp  Seven I

Very weak diversification

The 3 months correlation between Agrify and Seven is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i Holdings 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of Agrify Corp i.e., Agrify Corp and Seven I go up and down completely randomly.

Pair Corralation between Agrify Corp and Seven I

Given the investment horizon of 90 days Agrify Corp is expected to under-perform the Seven I. In addition to that, Agrify Corp is 3.61 times more volatile than Seven i Holdings. It trades about -0.04 of its total potential returns per unit of risk. Seven i Holdings is currently generating about -0.04 per unit of volatility. If you would invest  1,569  in Seven i Holdings on December 28, 2024 and sell it today you would lose (98.00) from holding Seven i Holdings or give up 6.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Agrify Corp  vs.  Seven i Holdings

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.

Seven i Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seven i Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Seven I is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Agrify Corp and Seven I

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

The idea behind Agrify Corp and Seven i Holdings 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.