Correlation Between Agrify Corp and WFD Unibail

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

By analyzing existing cross correlation between Agrify Corp and WFD Unibail Rodamco, you can compare the effects of market volatilities on Agrify Corp and WFD Unibail 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 Agrify Corp with a short position of WFD Unibail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and WFD Unibail.

Diversification Opportunities for Agrify Corp and WFD Unibail

-0.37

Correlation Coefficient

Agrify Corp  WFD Unibail

Very good diversification

The 3 months correlation between Agrify and WFD is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and WFD Unibail Rodamco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WFD Unibail Rodamco and Agrify Corp 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 Agrify Corp are associated (or correlated) with WFD Unibail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WFD Unibail Rodamco has no effect on the direction of Agrify Corp i.e., Agrify Corp and WFD Unibail go up and down completely randomly.

Pair Corralation between Agrify Corp and WFD Unibail

Given the investment horizon of 90 days Agrify Corp is expected to generate 4.04 times more return on investment than WFD Unibail. However, Agrify Corp is 4.04 times more volatile than WFD Unibail Rodamco. It trades about 0.03 of its potential returns per unit of risk. WFD Unibail Rodamco is currently generating about 0.06 per unit of risk. If you would invest  10,170  in Agrify Corp on September 13, 2024 and sell it today you would lose (6,852) from holding Agrify Corp or give up 67.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	79.8%
Values	Daily Returns

Agrify Corp  vs.  WFD Unibail Rodamco

Agrify Corp

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Agrify Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Agrify Corp showed solid returns over the last few months and may actually be approaching a breakup point.

WFD Unibail Rodamco

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WFD Unibail Rodamco has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, WFD Unibail is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Agrify Corp and WFD Unibail

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

The idea behind Agrify Corp and WFD Unibail Rodamco 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.