Correlation Between AGFA Gevaert and Iep Invest
Can any of the company-specific risk be diversified away by investing in both AGFA Gevaert and Iep Invest 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 AGFA Gevaert and Iep Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFA Gevaert NV and Iep Invest, you can compare the effects of market volatilities on AGFA Gevaert and Iep Invest 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 AGFA Gevaert with a short position of Iep Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFA Gevaert and Iep Invest.
Diversification Opportunities for AGFA Gevaert and Iep Invest
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between AGFA and Iep is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AGFA Gevaert NV and Iep Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iep Invest and AGFA Gevaert 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 AGFA Gevaert NV are associated (or correlated) with Iep Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iep Invest has no effect on the direction of AGFA Gevaert i.e., AGFA Gevaert and Iep Invest go up and down completely randomly.
Pair Corralation between AGFA Gevaert and Iep Invest
Assuming the 90 days trading horizon AGFA Gevaert NV is expected to under-perform the Iep Invest. In addition to that, AGFA Gevaert is 1.41 times more volatile than Iep Invest. It trades about -0.09 of its total potential returns per unit of risk. Iep Invest is currently generating about 0.01 per unit of volatility. If you would invest 530.00 in Iep Invest on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Iep Invest or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGFA Gevaert NV vs. Iep Invest
Performance |
| Timeline |
| AGFA Gevaert NV |
| Iep Invest |
AGFA Gevaert and Iep Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGFA Gevaert and Iep Invest
The main advantage of trading using opposite AGFA Gevaert and Iep Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFA Gevaert position performs unexpectedly, Iep Invest 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 Iep Invest will offset losses from the drop in Iep Invest's long position.| AGFA Gevaert vs. NV Bekaert SA | AGFA Gevaert vs. Barco NV | AGFA Gevaert vs. EVS Broadcast Equipment | AGFA Gevaert vs. Nyrstar NV |
| Iep Invest vs. Aedifica | Iep Invest vs. Cofinimmo SA | Iep Invest vs. Warehouses de Pauw | Iep Invest vs. VGP NV |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |