Correlation Between Painreform and Agile Thrpe

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

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

Diversification Opportunities for Painreform and Agile Thrpe

0.65

Correlation Coefficient

Painreform  Agile Thrpe

Poor diversification

The 3 months correlation between Painreform and Agile is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Painreform and Agile Thrpe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Thrpe and Painreform 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 Painreform are associated (or correlated) with Agile Thrpe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Thrpe has no effect on the direction of Painreform i.e., Painreform and Agile Thrpe go up and down completely randomly.

Pair Corralation between Painreform and Agile Thrpe

If you would invest  498.00  in Painreform on September 5, 2024 and sell it today you would lose (213.00) from holding Painreform or give up 42.77% of portfolio value over 90 days.

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

Painreform  vs.  Agile Thrpe

Painreform

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Painreform are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent technical and fundamental indicators, Painreform showed solid returns over the last few months and may actually be approaching a breakup point.

Agile Thrpe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agile Thrpe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Agile Thrpe is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Painreform and Agile Thrpe

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

The idea behind Painreform and Agile Thrpe 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 Stocks Directory module to find actively traded stocks across global markets.