Correlation Between Agat Ejendomme and Columbus
Can any of the company-specific risk be diversified away by investing in both Agat Ejendomme and Columbus 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 Columbus 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 Columbus AS, you can compare the effects of market volatilities on Agat Ejendomme and Columbus 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 Columbus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agat Ejendomme and Columbus.
Diversification Opportunities for Agat Ejendomme and Columbus
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agat and Columbus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agat Ejendomme AS and Columbus AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbus 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 Columbus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbus AS has no effect on the direction of Agat Ejendomme i.e., Agat Ejendomme and Columbus go up and down completely randomly.
Pair Corralation between Agat Ejendomme and Columbus
Assuming the 90 days trading horizon Agat Ejendomme AS is expected to under-perform the Columbus. In addition to that, Agat Ejendomme is 1.26 times more volatile than Columbus AS. It trades about -0.03 of its total potential returns per unit of risk. Columbus AS is currently generating about 0.05 per unit of volatility. If you would invest 958.00 in Columbus AS on September 3, 2024 and sell it today you would earn a total of 107.00 from holding Columbus AS or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agat Ejendomme AS vs. Columbus AS
Performance |
| Timeline |
| Agat Ejendomme AS |
| Columbus AS |
Agat Ejendomme and Columbus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agat Ejendomme and Columbus
The main advantage of trading using opposite Agat Ejendomme and Columbus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agat Ejendomme position performs unexpectedly, Columbus 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 Columbus will offset losses from the drop in Columbus' long position.| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital AS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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