Correlation Between Agriculture Natural and Dominari Holdings

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

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

Diversification Opportunities for Agriculture Natural and Dominari Holdings

-0.18

Correlation Coefficient

Agriculture Natural  Dominari Holdings

Good diversification

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

Pair Corralation between Agriculture Natural and Dominari Holdings

Assuming the 90 days horizon Agriculture Natural Solutions is expected to generate 0.23 times more return on investment than Dominari Holdings. However, Agriculture Natural Solutions is 4.33 times less risky than Dominari Holdings. It trades about 0.13 of its potential returns per unit of risk. Dominari Holdings is currently generating about -0.02 per unit of risk. If you would invest  1,075  in Agriculture Natural Solutions on May 6, 2025 and sell it today you would earn a total of  115.00  from holding Agriculture Natural Solutions or generate 10.7% return on investment over 90 days.

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

Agriculture Natural Solutions  vs.  Dominari Holdings

Agriculture Natural

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agriculture Natural Solutions are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, Agriculture Natural may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Dominari Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dominari Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Dominari Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Agriculture Natural and Dominari Holdings

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

The idea behind Agriculture Natural Solutions and Dominari Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.