Correlation Between Bunge and AgroFresh Solutions
Can any of the company-specific risk be diversified away by investing in both Bunge and AgroFresh Solutions 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 Bunge and AgroFresh Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bunge Limited and AgroFresh Solutions, you can compare the effects of market volatilities on Bunge and AgroFresh Solutions 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 Bunge with a short position of AgroFresh Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bunge and AgroFresh Solutions.
Diversification Opportunities for Bunge and AgroFresh Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bunge and AgroFresh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bunge Limited and AgroFresh Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgroFresh Solutions and Bunge 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 Bunge Limited are associated (or correlated) with AgroFresh Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgroFresh Solutions has no effect on the direction of Bunge i.e., Bunge and AgroFresh Solutions go up and down completely randomly.
Pair Corralation between Bunge and AgroFresh Solutions
If you would invest 9,986 in Bunge Limited on January 26, 2024 and sell it today you would earn a total of 593.00 from holding Bunge Limited or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bunge Limited vs. AgroFresh Solutions
Performance |
| Timeline |
| Bunge Limited |
| AgroFresh Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bunge and AgroFresh Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bunge and AgroFresh Solutions
The main advantage of trading using opposite Bunge and AgroFresh Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bunge position performs unexpectedly, AgroFresh Solutions 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 AgroFresh Solutions will offset losses from the drop in AgroFresh Solutions' long position.The idea behind Bunge Limited and AgroFresh Solutions 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.| AgroFresh Solutions vs. SW Seed Company | AgroFresh Solutions vs. Local Bounti Corp | AgroFresh Solutions vs. Edible Garden AG | AgroFresh Solutions vs. Limoneira Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |