Correlation Between AGC and Adm Tronics

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

By analyzing existing cross correlation between AGC Inc ADR and Adm Tronics Unltd, you can compare the effects of market volatilities on AGC and Adm Tronics 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 AGC with a short position of Adm Tronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGC and Adm Tronics.

Diversification Opportunities for AGC and Adm Tronics

0.74

Correlation Coefficient

AGC  Adm Tronics

Poor diversification

The 3 months correlation between AGC and Adm is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AGC Inc ADR and Adm Tronics Unltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adm Tronics Unltd and AGC 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 AGC Inc ADR are associated (or correlated) with Adm Tronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adm Tronics Unltd has no effect on the direction of AGC i.e., AGC and Adm Tronics go up and down completely randomly.

Pair Corralation between AGC and Adm Tronics

Assuming the 90 days horizon AGC is expected to generate 7.93 times less return on investment than Adm Tronics. But when comparing it to its historical volatility, AGC Inc ADR is 3.0 times less risky than Adm Tronics. It trades about 0.02 of its potential returns per unit of risk. Adm Tronics Unltd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Adm Tronics Unltd on July 12, 2025 and sell it today you would lose (2.50) from holding Adm Tronics Unltd or give up 22.73% of portfolio value over 90 days.

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

AGC Inc ADR  vs.  Adm Tronics Unltd

AGC Inc ADR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in AGC Inc ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, AGC may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Adm Tronics Unltd

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Adm Tronics Unltd are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, Adm Tronics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AGC and Adm Tronics

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

The idea behind AGC Inc ADR and Adm Tronics Unltd 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.