Correlation Between Whiting USA and AgrifyCorp

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

By analyzing existing cross correlation between Whiting USA Trust and AgrifyCorp, you can compare the effects of market volatilities on Whiting USA and AgrifyCorp 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 Whiting USA with a short position of AgrifyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whiting USA and AgrifyCorp.

Diversification Opportunities for Whiting USA and AgrifyCorp

0.0

Correlation Coefficient

Whiting USA  AgrifyCorp

Pay attention - limited upside

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

Pair Corralation between Whiting USA and AgrifyCorp

If you would invest (100.00) in Whiting USA Trust on January 19, 2024 and sell it today you would earn a total of  100.00  from holding Whiting USA Trust 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

Whiting USA Trust  vs.  AgrifyCorp

Whiting USA Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Whiting USA Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Whiting USA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

AgrifyCorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AgrifyCorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Whiting USA and AgrifyCorp

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

The idea behind Whiting USA Trust and AgrifyCorp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.