Correlation Between Agriculture Natural and IB Acquisition
Can any of the company-specific risk be diversified away by investing in both Agriculture Natural and IB Acquisition 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 Agriculture Natural and IB Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agriculture Natural Solutions and IB Acquisition Corp, you can compare the effects of market volatilities on Agriculture Natural and IB Acquisition 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 Agriculture Natural with a short position of IB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agriculture Natural and IB Acquisition.
Diversification Opportunities for Agriculture Natural and IB Acquisition
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agriculture and IBACR is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Agriculture Natural Solutions and IB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IB Acquisition Corp and Agriculture Natural 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 Agriculture Natural Solutions are associated (or correlated) with IB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IB Acquisition Corp has no effect on the direction of Agriculture Natural i.e., Agriculture Natural and IB Acquisition go up and down completely randomly.
Pair Corralation between Agriculture Natural and IB Acquisition
Assuming the 90 days horizon Agriculture Natural is expected to generate 1.45 times less return on investment than IB Acquisition. But when comparing it to its historical volatility, Agriculture Natural Solutions is 1.81 times less risky than IB Acquisition. It trades about 0.09 of its potential returns per unit of risk. IB Acquisition Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7.49 in IB Acquisition Corp on December 5, 2024 and sell it today you would lose (0.48) from holding IB Acquisition Corp or give up 6.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.08% |
Values | Daily Returns |
Agriculture Natural Solutions vs. IB Acquisition Corp
Performance |
Timeline |
Agriculture Natural |
IB Acquisition Corp |
Agriculture Natural and IB Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agriculture Natural and IB Acquisition
The main advantage of trading using opposite Agriculture Natural and IB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agriculture Natural position performs unexpectedly, IB Acquisition 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 IB Acquisition will offset losses from the drop in IB Acquisition's long position.Agriculture Natural vs. Ryanair Holdings PLC | Agriculture Natural vs. 51Talk Online Education | Agriculture Natural vs. United Guardian | Agriculture Natural vs. Lincoln Electric Holdings |
IB Acquisition vs. CF Industries Holdings | IB Acquisition vs. Gannett Co | IB Acquisition vs. PPG Industries | IB Acquisition vs. WEBTOON Entertainment Common |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |