Correlation Between Idaho Strategic and AGL Resources

Can any of the company-specific risk be diversified away by investing in both Idaho Strategic and AGL Resources 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 Idaho Strategic and AGL Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Idaho Strategic Resources and AGL Resources, you can compare the effects of market volatilities on Idaho Strategic and AGL Resources 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 Idaho Strategic with a short position of AGL Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idaho Strategic and AGL Resources.

Diversification Opportunities for Idaho Strategic and AGL Resources

0.0

Correlation Coefficient

Idaho Strategic  AGL Resources

Pay attention - limited upside

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

Pair Corralation between Idaho Strategic and AGL Resources

If you would invest  1,004  in Idaho Strategic Resources on October 26, 2024 and sell it today you would earn a total of  230.00  from holding Idaho Strategic Resources or generate 22.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Idaho Strategic Resources  vs.  AGL Resources

Idaho Strategic Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Idaho Strategic Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

AGL Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGL Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AGL Resources is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Idaho Strategic and AGL Resources

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

The idea behind Idaho Strategic Resources and AGL Resources 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.