Correlation Between Medicalg and Agroton Public

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

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

Diversification Opportunities for Medicalg and Agroton Public

0.0

Correlation Coefficient

Medicalg  Agroton Public

Pay attention - limited upside

The 3 months correlation between Medicalg and Agroton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Medicalg and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public and Medicalg 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 Medicalg 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 Medicalg i.e., Medicalg and Agroton Public go up and down completely randomly.

Pair Corralation between Medicalg and Agroton Public

If you would invest  1,811  in Medicalg on December 31, 2024 and sell it today you would earn a total of  789.00  from holding Medicalg or generate 43.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Medicalg  vs.  Agroton Public

Medicalg

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Medicalg are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Medicalg reported solid returns over the last few months and may actually be approaching a breakup point.

Agroton Public

Risk-Adjusted Performance

OK

Over the last 90 days Agroton Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Agroton Public is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Medicalg and Agroton Public

The main advantage of trading using opposite Medicalg and Agroton Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicalg 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 Medicalg 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.