Correlation Between CuraScientific and Agra Ventures

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

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

Diversification Opportunities for CuraScientific and Agra Ventures

0.01

Correlation Coefficient

CuraScientific  Agra Ventures

Significant diversification

The 3 months correlation between CuraScientific and Agra is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CuraScientific and Agra Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agra Ventures and CuraScientific 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 CuraScientific are associated (or correlated) with Agra Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agra Ventures has no effect on the direction of CuraScientific i.e., CuraScientific and Agra Ventures go up and down completely randomly.

Pair Corralation between CuraScientific and Agra Ventures

If you would invest  1.60  in Agra Ventures on September 12, 2024 and sell it today you would lose (0.05) from holding Agra Ventures or give up 3.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

CuraScientific  vs.  Agra Ventures

CuraScientific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CuraScientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CuraScientific is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Agra Ventures

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Agra Ventures are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Agra Ventures may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CuraScientific and Agra Ventures

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

The idea behind CuraScientific and Agra Ventures 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.