Correlation Between Agile Group and EGRNF
Can any of the company-specific risk be diversified away by investing in both Agile Group and EGRNF 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 Agile Group and EGRNF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Group Holdings and EGRNF, you can compare the effects of market volatilities on Agile Group and EGRNF 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 Agile Group with a short position of EGRNF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Group and EGRNF.
Diversification Opportunities for Agile Group and EGRNF
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agile and EGRNF is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agile Group Holdings and EGRNF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGRNF and Agile Group 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 Agile Group Holdings are associated (or correlated) with EGRNF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGRNF has no effect on the direction of Agile Group i.e., Agile Group and EGRNF go up and down completely randomly.
Pair Corralation between Agile Group and EGRNF
Assuming the 90 days horizon Agile Group is expected to generate 46.16 times less return on investment than EGRNF. But when comparing it to its historical volatility, Agile Group Holdings is 8.25 times less risky than EGRNF. It trades about 0.03 of its potential returns per unit of risk. EGRNF is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 0.05 in EGRNF on August 31, 2024 and sell it today you would lose (0.02) from holding EGRNF or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agile Group Holdings vs. EGRNF
Performance |
| Timeline |
| Agile Group Holdings |
| EGRNF |
Agile Group and EGRNF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Group and EGRNF
The main advantage of trading using opposite Agile Group and EGRNF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Group position performs unexpectedly, EGRNF 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 EGRNF will offset losses from the drop in EGRNF's long position.| Agile Group vs. China Resources Land | Agile Group vs. Sun Hung Kai | Agile Group vs. China Overseas Land | Agile Group vs. EGRNF |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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