Correlation Between Adgar Investments and Retailors

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

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

Diversification Opportunities for Adgar Investments and Retailors

-0.38

Correlation Coefficient

Adgar Investments  Retailors

Very good diversification

The 3 months correlation between Adgar and Retailors is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Adgar Investments and and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors and Adgar Investments 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 Adgar Investments and are associated (or correlated) with Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of Adgar Investments i.e., Adgar Investments and Retailors go up and down completely randomly.

Pair Corralation between Adgar Investments and Retailors

Assuming the 90 days trading horizon Adgar Investments and is expected to generate 0.49 times more return on investment than Retailors. However, Adgar Investments and is 2.02 times less risky than Retailors. It trades about 0.28 of its potential returns per unit of risk. Retailors is currently generating about -0.04 per unit of risk. If you would invest  43,100  in Adgar Investments and on April 24, 2025 and sell it today you would earn a total of  13,380  from holding Adgar Investments and or generate 31.04% return on investment over 90 days.

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

Adgar Investments and  vs.  Retailors

Adgar Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Adgar Investments and are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Adgar Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Retailors

Risk-Adjusted Performance

Very Weak

Over the last 90 days Retailors has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Adgar Investments and Retailors

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

The idea behind Adgar Investments and and Retailors 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..