Correlation Between STAG Industrial and Yara International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both STAG Industrial and Yara International 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 STAG Industrial and Yara International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial and Yara International ASA, you can compare the effects of market volatilities on STAG Industrial and Yara International 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 STAG Industrial with a short position of Yara International. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial and Yara International.

Diversification Opportunities for STAG Industrial and Yara International

STAGYaraDiversified AwaySTAGYaraDiversified Away100%
0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between STAG and Yara is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial and Yara International ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yara International ASA and STAG Industrial 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 STAG Industrial are associated (or correlated) with Yara International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yara International ASA has no effect on the direction of STAG Industrial i.e., STAG Industrial and Yara International go up and down completely randomly.

Pair Corralation between STAG Industrial and Yara International

Assuming the 90 days horizon STAG Industrial is expected to generate 9.41 times less return on investment than Yara International. But when comparing it to its historical volatility, STAG Industrial is 1.62 times less risky than Yara International. It trades about 0.03 of its potential returns per unit of risk. Yara International ASA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,040  in Yara International ASA on September 15, 2024 and sell it today you would earn a total of  100.00  from holding Yara International ASA or generate 4.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

STAG Industrial  vs.  Yara International ASA

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -20-15-10-50
JavaScript chart by amCharts 3.21.15SW6 YAR
       Timeline  
STAG Industrial 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days STAG Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, STAG Industrial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec33.53434.53535.5
Yara International ASA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Yara International ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec212223242526

STAG Industrial and Yara International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.09-1.58-1.07-0.56-0.06080.40.911.421.932.44 0.100.150.20
JavaScript chart by amCharts 3.21.15SW6 YAR
       Returns  

Pair Trading with STAG Industrial and Yara International

The main advantage of trading using opposite STAG Industrial and Yara International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial position performs unexpectedly, Yara International 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 Yara International will offset losses from the drop in Yara International's long position.
The idea behind STAG Industrial and Yara International ASA 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.
Check out your portfolio center.
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Money Managers
Screen money managers from public funds and ETFs managed around the world
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Bonds Directory
Find actively traded corporate debentures issued by US companies
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets


 

Trending Assets