Correlation Between NATIONAL INVESTMENT and AGAPE GLOBAL

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

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

Diversification Opportunities for NATIONAL INVESTMENT and AGAPE GLOBAL

0.0

Correlation Coefficient

NATIONAL INVESTMENT  AGAPE GLOBAL

Pay attention - limited upside

The 3 months correlation between NATIONAL and AGAPE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL INVESTMENT TRUST 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 NATIONAL INVESTMENT 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 NATIONAL INVESTMENT TRUST 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 NATIONAL INVESTMENT i.e., NATIONAL INVESTMENT and AGAPE GLOBAL go up and down completely randomly.

Pair Corralation between NATIONAL INVESTMENT and AGAPE GLOBAL

Assuming the 90 days trading horizon NATIONAL INVESTMENT TRUST is expected to under-perform the AGAPE GLOBAL. In addition to that, NATIONAL INVESTMENT is 2.37 times more volatile than AGAPE GLOBAL INVESTMENTS. It trades about -0.04 of its total potential returns per unit of risk. AGAPE GLOBAL INVESTMENTS is currently generating about -0.08 per unit of volatility. If you would invest  185.00  in AGAPE GLOBAL INVESTMENTS on September 15, 2024 and sell it today you would lose (50.00) from holding AGAPE GLOBAL INVESTMENTS or give up 27.03% of portfolio value over 90 days.

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

NATIONAL INVESTMENT TRUST  vs.  AGAPE GLOBAL INVESTMENTS

NATIONAL INVESTMENT TRUST

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NATIONAL INVESTMENT TRUST are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, NATIONAL INVESTMENT exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with NATIONAL INVESTMENT and AGAPE GLOBAL

The main advantage of trading using opposite NATIONAL INVESTMENT and AGAPE GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL INVESTMENT 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 NATIONAL INVESTMENT TRUST 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 Commodity Directory module to find actively traded commodities issued by global exchanges.