Correlation Between Agritek Holdings and Rimrock Gold

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

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

Diversification Opportunities for Agritek Holdings and Rimrock Gold

0.05

Correlation Coefficient

Agritek Holdings  Rimrock Gold

Significant diversification

The 3 months correlation between Agritek and Rimrock is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Agritek Holdings and Rimrock Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimrock Gold 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 Rimrock Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimrock Gold Corp has no effect on the direction of Agritek Holdings i.e., Agritek Holdings and Rimrock Gold go up and down completely randomly.

Pair Corralation between Agritek Holdings and Rimrock Gold

Given the investment horizon of 90 days Agritek Holdings is expected to generate 15.84 times more return on investment than Rimrock Gold. However, Agritek Holdings is 15.84 times more volatile than Rimrock Gold Corp. It trades about 0.16 of its potential returns per unit of risk. Rimrock Gold Corp is currently generating about 0.01 per unit of risk. If you would invest  0.01  in Agritek Holdings on May 7, 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Agritek Holdings  vs.  Rimrock Gold 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.

Rimrock Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rimrock Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak basic indicators, Rimrock Gold may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Agritek Holdings and Rimrock Gold

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

The idea behind Agritek Holdings and Rimrock Gold 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.