Correlation Between Agroliga Group and Play2Chill

Can any of the company-specific risk be diversified away by investing in both Agroliga Group and Play2Chill 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 Agroliga Group and Play2Chill into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agroliga Group PLC and Play2Chill SA, you can compare the effects of market volatilities on Agroliga Group and Play2Chill 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 Agroliga Group with a short position of Play2Chill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agroliga Group and Play2Chill.

Diversification Opportunities for Agroliga Group and Play2Chill

-0.81

Correlation Coefficient

Agroliga Group  Play2Chill

Pay attention - limited upside

The 3 months correlation between Agroliga and Play2Chill is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Agroliga Group PLC and Play2Chill SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Play2Chill SA and Agroliga Group 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 Agroliga Group PLC are associated (or correlated) with Play2Chill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Play2Chill SA has no effect on the direction of Agroliga Group i.e., Agroliga Group and Play2Chill go up and down completely randomly.

Pair Corralation between Agroliga Group and Play2Chill

Assuming the 90 days trading horizon Agroliga Group PLC is expected to generate 2.05 times more return on investment than Play2Chill. However, Agroliga Group is 2.05 times more volatile than Play2Chill SA. It trades about 0.18 of its potential returns per unit of risk. Play2Chill SA is currently generating about -0.14 per unit of risk. If you would invest  1,820  in Agroliga Group PLC on December 24, 2024 and sell it today you would earn a total of  1,220  from holding Agroliga Group PLC or generate 67.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	92.98%
Values	Daily Returns

Agroliga Group PLC  vs.  Play2Chill SA

Agroliga Group PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agroliga Group PLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Agroliga Group reported solid returns over the last few months and may actually be approaching a breakup point.

Play2Chill SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Play2Chill SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Agroliga Group and Play2Chill

The main advantage of trading using opposite Agroliga Group and Play2Chill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agroliga Group position performs unexpectedly, Play2Chill 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 Play2Chill will offset losses from the drop in Play2Chill's long position.

The idea behind Agroliga Group PLC and Play2Chill 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.