Correlation Between Agat Ejendomme and Cemat AS
Can any of the company-specific risk be diversified away by investing in both Agat Ejendomme and Cemat AS 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 Agat Ejendomme and Cemat AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agat Ejendomme AS and Cemat AS, you can compare the effects of market volatilities on Agat Ejendomme and Cemat AS 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 Agat Ejendomme with a short position of Cemat AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agat Ejendomme and Cemat AS.
Diversification Opportunities for Agat Ejendomme and Cemat AS
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agat and Cemat is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agat Ejendomme AS and Cemat AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemat AS and Agat Ejendomme 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 Agat Ejendomme AS are associated (or correlated) with Cemat AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemat AS has no effect on the direction of Agat Ejendomme i.e., Agat Ejendomme and Cemat AS go up and down completely randomly.
Pair Corralation between Agat Ejendomme and Cemat AS
Assuming the 90 days trading horizon Agat Ejendomme AS is expected to under-perform the Cemat AS. In addition to that, Agat Ejendomme is 1.13 times more volatile than Cemat AS. It trades about -0.01 of its total potential returns per unit of risk. Cemat AS is currently generating about 0.08 per unit of volatility. If you would invest 97.00 in Cemat AS on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Cemat AS or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Agat Ejendomme AS vs. Cemat AS
Performance |
| Timeline |
| Agat Ejendomme AS |
| Cemat AS |
Agat Ejendomme and Cemat AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agat Ejendomme and Cemat AS
The main advantage of trading using opposite Agat Ejendomme and Cemat AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agat Ejendomme position performs unexpectedly, Cemat AS 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 Cemat AS will offset losses from the drop in Cemat AS's long position.| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital AS |
| Cemat AS vs. BioPorto | Cemat AS vs. Newcap Holding AS | Cemat AS vs. Agat Ejendomme AS | Cemat AS vs. PF Atlantic Petroleum |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |