Correlation Between AGP and Synthetic Products
Can any of the company-specific risk be diversified away by investing in both AGP and Synthetic Products 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 AGP and Synthetic Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGP and Synthetic Products Enterprises, you can compare the effects of market volatilities on AGP and Synthetic Products 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 AGP with a short position of Synthetic Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGP and Synthetic Products.
Diversification Opportunities for AGP and Synthetic Products
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGP and Synthetic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding AGP and Synthetic Products Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthetic Products and AGP 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 AGP are associated (or correlated) with Synthetic Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synthetic Products has no effect on the direction of AGP i.e., AGP and Synthetic Products go up and down completely randomly.
Pair Corralation between AGP and Synthetic Products
Assuming the 90 days trading horizon AGP is expected to generate 2.35 times less return on investment than Synthetic Products. But when comparing it to its historical volatility, AGP is 1.71 times less risky than Synthetic Products. It trades about 0.03 of its potential returns per unit of risk. Synthetic Products Enterprises is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,981 in Synthetic Products Enterprises on November 19, 2024 and sell it today you would earn a total of 152.00 from holding Synthetic Products Enterprises or generate 3.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AGP vs. Synthetic Products Enterprises
Performance |
Timeline |
AGP |
Synthetic Products |
AGP and Synthetic Products Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AGP and Synthetic Products
The main advantage of trading using opposite AGP and Synthetic Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGP position performs unexpectedly, Synthetic Products 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 Synthetic Products will offset losses from the drop in Synthetic Products' long position.AGP vs. Arpak International Investment | ||
AGP vs. Jubilee Life Insurance | ||
AGP vs. TPL Insurance | ||
AGP vs. Air Link Communication |
Synthetic Products vs. Bank of Punjab | ||
Synthetic Products vs. First Fidelity Leasing | ||
Synthetic Products vs. TPL Insurance | ||
Synthetic Products vs. Jubilee Life Insurance |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |