Correlation Between Agritek Holdings and Adler Group

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

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

Diversification Opportunities for Agritek Holdings and Adler Group

0.0

Correlation Coefficient

Agritek Holdings  Adler Group

Pay attention - limited upside

The 3 months correlation between Agritek and Adler is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agritek Holdings and Adler Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adler Group SA and Agritek Holdings 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 Agritek Holdings are associated (or correlated) with Adler Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adler Group SA has no effect on the direction of Agritek Holdings i.e., Agritek Holdings and Adler Group go up and down completely randomly.

Pair Corralation between Agritek Holdings and Adler Group

If you would invest  35.00  in Adler Group SA on November 29, 2024 and sell it today you would earn a total of  0.00  from holding Adler Group SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	38.1%
Values	Daily Returns

Agritek Holdings  vs.  Adler Group SA

Agritek Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agritek Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Agritek Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Adler Group SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adler Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Adler Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Agritek Holdings and Adler Group

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

The idea behind Agritek Holdings and Adler Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..