Correlation Between Agria and General Steel
Can any of the company-specific risk be diversified away by investing in both Agria and General Steel 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 Agria and General Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agria and General Steel Holdings, you can compare the effects of market volatilities on Agria and General Steel 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 Agria with a short position of General Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agria and General Steel.
Diversification Opportunities for Agria and General Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agria and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agria and General Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Steel Holdings and Agria 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 Agria are associated (or correlated) with General Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Steel Holdings has no effect on the direction of Agria i.e., Agria and General Steel go up and down completely randomly.
Pair Corralation between Agria and General Steel
If you would invest (100.00) in General Steel Holdings on January 26, 2024 and sell it today you would earn a total of 100.00 from holding General Steel Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agria vs. General Steel Holdings
Performance |
| Timeline |
| Agria |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| General Steel Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agria and General Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agria and General Steel
The main advantage of trading using opposite Agria and General Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agria position performs unexpectedly, General Steel 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 General Steel will offset losses from the drop in General Steel's long position.| Agria vs. Tootsie Roll Industries | Agria vs. Ryanair Holdings PLC | Agria vs. Procter Gamble | Agria vs. Mondee Holdings |
| General Steel vs. Lincoln Educational Services | General Steel vs. MYnd Analytics | General Steel vs. Relx PLC ADR | General Steel vs. Youdao Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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