Correlation Between Agillic AS and Nordfyns Bank
Can any of the company-specific risk be diversified away by investing in both Agillic AS and Nordfyns Bank 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 Nordfyns Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agillic AS and Nordfyns Bank AS, you can compare the effects of market volatilities on Agillic AS and Nordfyns Bank 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 Nordfyns Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agillic AS and Nordfyns Bank.
Diversification Opportunities for Agillic AS and Nordfyns Bank
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agillic and Nordfyns is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Agillic AS and Nordfyns Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordfyns Bank 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 Nordfyns Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordfyns Bank AS has no effect on the direction of Agillic AS i.e., Agillic AS and Nordfyns Bank go up and down completely randomly.
Pair Corralation between Agillic AS and Nordfyns Bank
Assuming the 90 days trading horizon Agillic AS is expected to under-perform the Nordfyns Bank. In addition to that, Agillic AS is 2.39 times more volatile than Nordfyns Bank AS. It trades about -0.11 of its total potential returns per unit of risk. Nordfyns Bank AS is currently generating about -0.16 per unit of volatility. If you would invest 33,400 in Nordfyns Bank AS on September 13, 2024 and sell it today you would lose (1,000.00) from holding Nordfyns Bank AS or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agillic AS vs. Nordfyns Bank AS
Performance |
| Timeline |
| Agillic AS |
| Nordfyns Bank AS |
Agillic AS and Nordfyns Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agillic AS and Nordfyns Bank
The main advantage of trading using opposite Agillic AS and Nordfyns Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agillic AS position performs unexpectedly, Nordfyns Bank 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 Nordfyns Bank will offset losses from the drop in Nordfyns Bank's long position.| Agillic AS vs. cBrain AS | Agillic AS vs. Danske Invest | Agillic AS vs. BankInvest Optima 30 | Agillic AS vs. Gabriel Holding |
| Nordfyns Bank vs. FLSmidth Co | Nordfyns Bank vs. Danske Bank AS | Nordfyns Bank vs. ISS AS | Nordfyns Bank vs. DSV Panalpina 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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