Correlation Between Agricultural Bank and Alamos Gold

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Can any of the company-specific risk be diversified away by investing in both Agricultural Bank and Alamos Gold 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 Agricultural Bank and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agricultural Bank and Alamos Gold, you can compare the effects of market volatilities on Agricultural Bank and Alamos Gold 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 Agricultural Bank with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Alamos Gold.

Diversification Opportunities for Agricultural Bank and Alamos Gold

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Agricultural Bank and Alamos Gold

If you would invest  38.00  in Agricultural Bank on December 19, 2023 and sell it today you would earn a total of  2.00  from holding Agricultural Bank or generate 5.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Agricultural Bank  vs.  Alamos Gold

 Performance 
       Timeline  
Agricultural Bank 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Agricultural Bank are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Agricultural Bank may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Alamos Gold 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Alamos Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Alamos Gold is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Agricultural Bank and Alamos Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agricultural Bank and Alamos Gold

The main advantage of trading using opposite Agricultural Bank and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Alamos Gold 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.
The idea behind Agricultural Bank and Alamos Gold 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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