Correlation Between Agrify Corp and Canacol Energy

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

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

Diversification Opportunities for Agrify Corp and Canacol Energy

-0.18

Correlation Coefficient

Agrify Corp  Canacol Energy

Good diversification

The 3 months correlation between Agrify and Canacol is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and Canacol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canacol Energy and Agrify Corp 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 Agrify Corp are associated (or correlated) with Canacol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canacol Energy has no effect on the direction of Agrify Corp i.e., Agrify Corp and Canacol Energy go up and down completely randomly.

Pair Corralation between Agrify Corp and Canacol Energy

Given the investment horizon of 90 days Agrify Corp is expected to generate 2.78 times more return on investment than Canacol Energy. However, Agrify Corp is 2.78 times more volatile than Canacol Energy. It trades about 0.05 of its potential returns per unit of risk. Canacol Energy is currently generating about -0.21 per unit of risk. If you would invest  2,235  in Agrify Corp on May 6, 2025 and sell it today you would earn a total of  195.00  from holding Agrify Corp or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Agrify Corp  vs.  Canacol Energy

Agrify Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agrify Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Agrify Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Canacol Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canacol Energy 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 technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Agrify Corp and Canacol Energy

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

The idea behind Agrify Corp and Canacol Energy 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.