Correlation Between Huntwicke Capital and Federal Agricultural

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

By analyzing existing cross correlation between Huntwicke Capital Group and Federal Agricultural Mortgage, you can compare the effects of market volatilities on Huntwicke Capital and Federal Agricultural 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 Huntwicke Capital with a short position of Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntwicke Capital and Federal Agricultural.

Diversification Opportunities for Huntwicke Capital and Federal Agricultural

0.63

Correlation Coefficient

Huntwicke Capital  Federal Agricultural

Poor diversification

The 3 months correlation between Huntwicke and Federal is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Huntwicke Capital Group and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural and Huntwicke Capital 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 Huntwicke Capital Group are associated (or correlated) with Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of Huntwicke Capital i.e., Huntwicke Capital and Federal Agricultural go up and down completely randomly.

Pair Corralation between Huntwicke Capital and Federal Agricultural

If you would invest  770.00  in Huntwicke Capital Group on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Huntwicke Capital Group or generate 0.0% return on investment over 90 days.

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

Huntwicke Capital Group  vs.  Federal Agricultural Mortgage

Huntwicke Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Huntwicke Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Huntwicke Capital is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Federal Agricultural

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Huntwicke Capital and Federal Agricultural

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

The idea behind Huntwicke Capital Group and Federal Agricultural Mortgage 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.