Correlation Between Agat Ejendomme and Harboes Bryggeri
Can any of the company-specific risk be diversified away by investing in both Agat Ejendomme and Harboes Bryggeri 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 Harboes Bryggeri 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 Harboes Bryggeri AS, you can compare the effects of market volatilities on Agat Ejendomme and Harboes Bryggeri 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 Harboes Bryggeri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agat Ejendomme and Harboes Bryggeri.
Diversification Opportunities for Agat Ejendomme and Harboes Bryggeri
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agat and Harboes is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Agat Ejendomme AS and Harboes Bryggeri AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harboes Bryggeri 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 Harboes Bryggeri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harboes Bryggeri has no effect on the direction of Agat Ejendomme i.e., Agat Ejendomme and Harboes Bryggeri go up and down completely randomly.
Pair Corralation between Agat Ejendomme and Harboes Bryggeri
Assuming the 90 days trading horizon Agat Ejendomme AS is expected to under-perform the Harboes Bryggeri. In addition to that, Agat Ejendomme is 1.36 times more volatile than Harboes Bryggeri AS. It trades about -0.02 of its total potential returns per unit of risk. Harboes Bryggeri AS is currently generating about 0.14 per unit of volatility. If you would invest 15,250 in Harboes Bryggeri AS on November 30, 2024 and sell it today you would earn a total of 2,400 from holding Harboes Bryggeri AS or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agat Ejendomme AS vs. Harboes Bryggeri AS
Performance |
| Timeline |
| Agat Ejendomme AS |
| Harboes Bryggeri |
Agat Ejendomme and Harboes Bryggeri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agat Ejendomme and Harboes Bryggeri
The main advantage of trading using opposite Agat Ejendomme and Harboes Bryggeri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agat Ejendomme position performs unexpectedly, Harboes Bryggeri 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 Harboes Bryggeri will offset losses from the drop in Harboes Bryggeri'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 |
| Harboes Bryggeri vs. Royal Unibrew AS | Harboes Bryggeri vs. Matas AS | Harboes Bryggeri vs. Nnit AS | Harboes Bryggeri vs. DFDS 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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