Correlation Between Agritek Holdings and GelStat Corp

Can any of the company-specific risk be diversified away by investing in both Agritek Holdings and GelStat 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 GelStat 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 GelStat Corp, you can compare the effects of market volatilities on Agritek Holdings and GelStat 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 GelStat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agritek Holdings and GelStat Corp.

Diversification Opportunities for Agritek Holdings and GelStat Corp

-0.07

Correlation Coefficient

Agritek Holdings  GelStat Corp

Good diversification

The 3 months correlation between Agritek and GelStat is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Agritek Holdings and GelStat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GelStat 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 GelStat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GelStat Corp has no effect on the direction of Agritek Holdings i.e., Agritek Holdings and GelStat Corp go up and down completely randomly.

Pair Corralation between Agritek Holdings and GelStat Corp

If you would invest  0.01  in Agritek Holdings on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Agritek Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Agritek Holdings  vs.  GelStat Corp

Agritek Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agritek Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Agritek Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

GelStat Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days GelStat Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, GelStat Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Agritek Holdings and GelStat Corp

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

The idea behind Agritek Holdings and GelStat 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.