Correlation Between Metals X and AgriMinco Corp

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

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

Diversification Opportunities for Metals X and AgriMinco Corp

0.0

Correlation Coefficient

Metals X  AgriMinco Corp

Pay attention - limited upside

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

Pair Corralation between Metals X and AgriMinco Corp

If you would invest  23.00  in Metals X Limited on December 30, 2024 and sell it today you would earn a total of  18.00  from holding Metals X Limited or generate 78.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Metals X Limited  vs.  AgriMinco Corp

Metals X Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Metals X Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Metals X reported solid returns over the last few months and may actually be approaching a breakup point.

AgriMinco Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days AgriMinco Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, AgriMinco Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Metals X and AgriMinco Corp

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

The idea behind Metals X Limited and AgriMinco Corp 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.

Check out your portfolio center.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.