Correlation Between Nutrien and Argo Living

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

By analyzing existing cross correlation between Nutrien and Argo Living Soils, you can compare the effects of market volatilities on Nutrien and Argo Living 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 Nutrien with a short position of Argo Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutrien and Argo Living.

Diversification Opportunities for Nutrien and Argo Living

0.49

Correlation Coefficient

Nutrien  Argo Living

Very weak diversification

The 3 months correlation between Nutrien and Argo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nutrien and Argo Living Soils in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Living Soils and Nutrien 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 Nutrien are associated (or correlated) with Argo Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Living Soils has no effect on the direction of Nutrien i.e., Nutrien and Argo Living go up and down completely randomly.

Pair Corralation between Nutrien and Argo Living

Considering the 90-day investment horizon Nutrien is expected to under-perform the Argo Living. But the stock apears to be less risky and, when comparing its historical volatility, Nutrien is 3.4 times less risky than Argo Living. The stock trades about 0.0 of its potential returns per unit of risk. The Argo Living Soils is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  41.00  in Argo Living Soils on May 17, 2025 and sell it today you would earn a total of  16.00  from holding Argo Living Soils or generate 39.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Nutrien  vs.  Argo Living Soils

Nutrien

Risk-Adjusted Performance

Weakest

Over the last 90 days Nutrien has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Nutrien is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Argo Living Soils

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Living Soils are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Argo Living reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nutrien and Argo Living

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

The idea behind Nutrien and Argo Living Soils 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.