Correlation Between Aega ASA and Exact Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aega ASA and Exact Therapeutics 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 Aega ASA and Exact Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aega ASA and Exact Therapeutics AS, you can compare the effects of market volatilities on Aega ASA and Exact Therapeutics 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 Aega ASA with a short position of Exact Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aega ASA and Exact Therapeutics.
Diversification Opportunities for Aega ASA and Exact Therapeutics
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aega and Exact is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aega ASA and Exact Therapeutics AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exact Therapeutics and Aega ASA 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 Aega ASA are associated (or correlated) with Exact Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exact Therapeutics has no effect on the direction of Aega ASA i.e., Aega ASA and Exact Therapeutics go up and down completely randomly.
Pair Corralation between Aega ASA and Exact Therapeutics
Assuming the 90 days trading horizon Aega ASA is expected to generate 19.48 times more return on investment than Exact Therapeutics. However, Aega ASA is 19.48 times more volatile than Exact Therapeutics AS. It trades about 0.1 of its potential returns per unit of risk. Exact Therapeutics AS is currently generating about -0.09 per unit of risk. If you would invest 179.00 in Aega ASA on November 2, 2024 and sell it today you would lose (157.00) from holding Aega ASA or give up 87.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aega ASA vs. Exact Therapeutics AS
Performance |
| Timeline |
| Aega ASA |
| Exact Therapeutics |
Aega ASA and Exact Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aega ASA and Exact Therapeutics
The main advantage of trading using opposite Aega ASA and Exact Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aega ASA position performs unexpectedly, Exact Therapeutics 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 Exact Therapeutics will offset losses from the drop in Exact Therapeutics' long position.| Aega ASA vs. Clean Seas Seafood | Aega ASA vs. Polaris Media | Aega ASA vs. Jaeren Sparebank | Aega ASA vs. Melhus Sparebank |
| Exact Therapeutics vs. Helgeland Sparebank | Exact Therapeutics vs. Golden Energy Offshore | Exact Therapeutics vs. Sogn Sparebank | Exact Therapeutics vs. Goodtech |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |