Correlation Between Kogeneracja and Agroton Public

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

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

Diversification Opportunities for Kogeneracja and Agroton Public

-0.12

Correlation Coefficient

Kogeneracja  Agroton Public

Good diversification

The 3 months correlation between Kogeneracja and Agroton is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public and Kogeneracja 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 Kogeneracja SA are associated (or correlated) with Agroton Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agroton Public has no effect on the direction of Kogeneracja i.e., Kogeneracja and Agroton Public go up and down completely randomly.

Pair Corralation between Kogeneracja and Agroton Public

Assuming the 90 days trading horizon Kogeneracja SA is expected to under-perform the Agroton Public. But the stock apears to be less risky and, when comparing its historical volatility, Kogeneracja SA is 1.53 times less risky than Agroton Public. The stock trades about -0.15 of its potential returns per unit of risk. The Agroton Public is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  355.00  in Agroton Public on October 24, 2024 and sell it today you would earn a total of  112.00  from holding Agroton Public or generate 31.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kogeneracja SA  vs.  Agroton Public

Kogeneracja SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kogeneracja SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic 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.

Agroton Public

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agroton Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Agroton Public reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kogeneracja and Agroton Public

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

The idea behind Kogeneracja SA and Agroton 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.