Correlation Between Agritek Holdings and Ambase Corp

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

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

Diversification Opportunities for Agritek Holdings and Ambase Corp

0.0

Correlation Coefficient

Agritek Holdings  Ambase Corp

Pay attention - limited upside

The 3 months correlation between Agritek and Ambase is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agritek Holdings and Ambase Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambase Corp and Agritek Holdings 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 Agritek Holdings are associated (or correlated) with Ambase Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambase Corp has no effect on the direction of Agritek Holdings i.e., Agritek Holdings and Ambase Corp go up and down completely randomly.

Pair Corralation between Agritek Holdings and Ambase Corp

If you would invest  21.00  in Ambase Corp on August 2, 2024 and sell it today you would earn a total of  14.00  from holding Ambase Corp or generate 66.67% return on investment over 90 days.

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

Agritek Holdings  vs.  Ambase Corp

Agritek Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agritek Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Agritek Holdings is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Ambase Corp

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ambase Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile fundamental indicators, Ambase Corp may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Agritek Holdings and Ambase Corp

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

The idea behind Agritek Holdings and Ambase Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.