Correlation Between Agilyx AS and Airthings ASA
Can any of the company-specific risk be diversified away by investing in both Agilyx AS and Airthings ASA 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 Agilyx AS and Airthings ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilyx AS and Airthings ASA, you can compare the effects of market volatilities on Agilyx AS and Airthings ASA 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 Agilyx AS with a short position of Airthings ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilyx AS and Airthings ASA.
Diversification Opportunities for Agilyx AS and Airthings ASA
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agilyx and Airthings is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Agilyx AS and Airthings ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airthings ASA and Agilyx 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 Agilyx AS are associated (or correlated) with Airthings ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airthings ASA has no effect on the direction of Agilyx AS i.e., Agilyx AS and Airthings ASA go up and down completely randomly.
Pair Corralation between Agilyx AS and Airthings ASA
Assuming the 90 days trading horizon Agilyx AS is expected to generate 0.66 times more return on investment than Airthings ASA. However, Agilyx AS is 1.52 times less risky than Airthings ASA. It trades about 0.0 of its potential returns per unit of risk. Airthings ASA is currently generating about -0.03 per unit of risk. If you would invest 3,300 in Agilyx AS on October 21, 2024 and sell it today you would lose (110.00) from holding Agilyx AS or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilyx AS vs. Airthings ASA
Performance |
| Timeline |
| Agilyx AS |
| Airthings ASA |
Agilyx AS and Airthings ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilyx AS and Airthings ASA
The main advantage of trading using opposite Agilyx AS and Airthings ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilyx AS position performs unexpectedly, Airthings ASA 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 Airthings ASA will offset losses from the drop in Airthings ASA's long position.The idea behind Agilyx AS and Airthings ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Airthings ASA vs. Atlantic Sapphire As | Airthings ASA vs. Vow ASA | Airthings ASA vs. Aker Horizons AS | Airthings ASA vs. Saga Pure ASA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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