Correlation Between Agillic AS and DFDS AS
Can any of the company-specific risk be diversified away by investing in both Agillic AS and DFDS 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 Agillic AS and DFDS AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agillic AS and DFDS AS, you can compare the effects of market volatilities on Agillic AS and DFDS 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 Agillic AS with a short position of DFDS AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agillic AS and DFDS AS.
Diversification Opportunities for Agillic AS and DFDS AS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agillic and DFDS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Agillic AS and DFDS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFDS AS and Agillic AS 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 Agillic AS are associated (or correlated) with DFDS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFDS AS has no effect on the direction of Agillic AS i.e., Agillic AS and DFDS AS go up and down completely randomly.
Pair Corralation between Agillic AS and DFDS AS
Assuming the 90 days trading horizon Agillic AS is expected to generate 0.18 times more return on investment than DFDS AS. However, Agillic AS is 5.43 times less risky than DFDS AS. It trades about -0.3 of its potential returns per unit of risk. DFDS AS is currently generating about -0.22 per unit of risk. If you would invest 900.00 in Agillic AS on November 3, 2024 and sell it today you would lose (50.00) from holding Agillic AS or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agillic AS vs. DFDS AS
Performance |
| Timeline |
| Agillic AS |
| DFDS AS |
Agillic AS and DFDS AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agillic AS and DFDS AS
The main advantage of trading using opposite Agillic AS and DFDS AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agillic AS position performs unexpectedly, DFDS 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 DFDS AS will offset losses from the drop in DFDS AS's long position.| Agillic AS vs. Nordea Bank Abp | Agillic AS vs. Hvidbjerg Bank | Agillic AS vs. Ringkjoebing Landbobank AS | Agillic AS vs. Strategic Investments AS |
| DFDS AS vs. FLSmidth Co | DFDS AS vs. NKT AS | DFDS AS vs. Dampskibsselskabet Norden AS | DFDS AS vs. GN Store Nord |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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