Correlation Between ELITE MEAT and AGAPE GLOBAL

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

By analyzing existing cross correlation between ELITE MEAT PROCESSORS and AGAPE GLOBAL INVESTMENTS, you can compare the effects of market volatilities on ELITE MEAT and AGAPE GLOBAL 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 ELITE MEAT with a short position of AGAPE GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELITE MEAT and AGAPE GLOBAL.

Diversification Opportunities for ELITE MEAT and AGAPE GLOBAL

0.0

Correlation Coefficient

ELITE MEAT  AGAPE GLOBAL

Pay attention - limited upside

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

Pair Corralation between ELITE MEAT and AGAPE GLOBAL

Assuming the 90 days trading horizon ELITE MEAT PROCESSORS is expected to generate 0.65 times more return on investment than AGAPE GLOBAL. However, ELITE MEAT PROCESSORS is 1.53 times less risky than AGAPE GLOBAL. It trades about 0.17 of its potential returns per unit of risk. AGAPE GLOBAL INVESTMENTS is currently generating about -0.07 per unit of risk. If you would invest  185.00  in ELITE MEAT PROCESSORS on October 27, 2024 and sell it today you would earn a total of  8.00  from holding ELITE MEAT PROCESSORS or generate 4.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	9.68%
Values	Daily Returns

ELITE MEAT PROCESSORS  vs.  AGAPE GLOBAL INVESTMENTS

ELITE MEAT PROCESSORS

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ELITE MEAT PROCESSORS are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ELITE MEAT may actually be approaching a critical reversion point that can send shares even higher in February 2025.

AGAPE GLOBAL INVESTMENTS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGAPE GLOBAL INVESTMENTS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AGAPE GLOBAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ELITE MEAT and AGAPE GLOBAL

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

The idea behind ELITE MEAT PROCESSORS and AGAPE GLOBAL INVESTMENTS 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.