Correlation Between AGL Resources and Hiron Trade
Can any of the company-specific risk be diversified away by investing in both AGL Resources and Hiron Trade 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 AGL Resources and Hiron Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGL Resources and Hiron Trade Investments Industrial, you can compare the effects of market volatilities on AGL Resources and Hiron Trade 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 AGL Resources with a short position of Hiron Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGL Resources and Hiron Trade.
Diversification Opportunities for AGL Resources and Hiron Trade
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGL and Hiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGL Resources and Hiron Trade Investments Indust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiron Trade Investments and AGL Resources 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 AGL Resources are associated (or correlated) with Hiron Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiron Trade Investments has no effect on the direction of AGL Resources i.e., AGL Resources and Hiron Trade go up and down completely randomly.
Pair Corralation between AGL Resources and Hiron Trade
If you would invest (100.00) in AGL Resources on January 24, 2024 and sell it today you would earn a total of 100.00 from holding AGL Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGL Resources vs. Hiron Trade Investments Indust
Performance |
| Timeline |
| AGL Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hiron Trade Investments |
AGL Resources and Hiron Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGL Resources and Hiron Trade
The main advantage of trading using opposite AGL Resources and Hiron Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGL Resources position performs unexpectedly, Hiron Trade 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 Hiron Trade will offset losses from the drop in Hiron Trade's long position.| AGL Resources vs. PennantPark Floating Rate | AGL Resources vs. Barings BDC | AGL Resources vs. Western Union Co | AGL Resources vs. Stepstone Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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