Correlation Between Top Wealth and Adecoagro

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

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

Diversification Opportunities for Top Wealth and Adecoagro

-0.18

Correlation Coefficient

Top Wealth  Adecoagro

Good diversification

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

Pair Corralation between Top Wealth and Adecoagro

Considering the 90-day investment horizon Top Wealth Group is expected to under-perform the Adecoagro. In addition to that, Top Wealth is 5.66 times more volatile than Adecoagro SA. It trades about -0.04 of its total potential returns per unit of risk. Adecoagro SA is currently generating about 0.06 per unit of volatility. If you would invest  867.00  in Adecoagro SA on May 8, 2025 and sell it today you would earn a total of  45.00  from holding Adecoagro SA or generate 5.19% return on investment over 90 days.

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

Top Wealth Group  vs.  Adecoagro SA

Top Wealth Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Top Wealth Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Adecoagro SA

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Adecoagro SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Adecoagro is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Top Wealth and Adecoagro

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

The idea behind Top Wealth Group and Adecoagro SA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.