Correlation Between Crdit Agricole and Agrify Corp

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

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

Diversification Opportunities for Crdit Agricole and Agrify Corp

0.33

Correlation Coefficient

Crdit Agricole  Agrify Corp

Weak diversification

The 3 months correlation between Crdit and Agrify is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp and Crdit Agricole 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 Crdit Agricole SA are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of Crdit Agricole i.e., Crdit Agricole and Agrify Corp go up and down completely randomly.

Pair Corralation between Crdit Agricole and Agrify Corp

Assuming the 90 days horizon Crdit Agricole is expected to generate 46.35 times less return on investment than Agrify Corp. But when comparing it to its historical volatility, Crdit Agricole SA is 2.92 times less risky than Agrify Corp. It trades about 0.0 of its potential returns per unit of risk. Agrify Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,247  in Agrify Corp on May 4, 2025 and sell it today you would earn a total of  227.00  from holding Agrify Corp or generate 10.1% return on investment over 90 days.

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

Crdit Agricole SA  vs.  Agrify Corp

Crdit Agricole SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crdit Agricole SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Crdit Agricole is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Agrify Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agrify Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Agrify Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Crdit Agricole and Agrify Corp

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

The idea behind Crdit Agricole SA and Agrify 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.