Correlation Between Asia Plus and Agripure Holdings

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

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

Diversification Opportunities for Asia Plus and Agripure Holdings

0.61

Correlation Coefficient

Asia Plus  Agripure Holdings

Poor diversification

The 3 months correlation between Asia and Agripure is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Asia Plus Group and Agripure Holdings Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agripure Holdings Public and Asia Plus 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 Asia Plus Group are associated (or correlated) with Agripure Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agripure Holdings Public has no effect on the direction of Asia Plus i.e., Asia Plus and Agripure Holdings go up and down completely randomly.

Pair Corralation between Asia Plus and Agripure Holdings

Assuming the 90 days trading horizon Asia Plus Group is expected to under-perform the Agripure Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Asia Plus Group is 2.09 times less risky than Agripure Holdings. The stock trades about -0.17 of its potential returns per unit of risk. The Agripure Holdings Public is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  436.00  in Agripure Holdings Public on October 10, 2024 and sell it today you would lose (22.00) from holding Agripure Holdings Public or give up 5.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.31%
Values	Daily Returns

Asia Plus Group  vs.  Agripure Holdings Public

Asia Plus Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asia Plus Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Agripure Holdings Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agripure Holdings Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Agripure Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Asia Plus and Agripure Holdings

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

The idea behind Asia Plus Group and Agripure Holdings Public 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.