Correlation Between Alefarm Brewing and Agillic AS
Can any of the company-specific risk be diversified away by investing in both Alefarm Brewing and Agillic 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 Alefarm Brewing and Agillic AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alefarm Brewing AS and Agillic AS, you can compare the effects of market volatilities on Alefarm Brewing and Agillic 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 Alefarm Brewing with a short position of Agillic AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alefarm Brewing and Agillic AS.
Diversification Opportunities for Alefarm Brewing and Agillic AS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alefarm and Agillic is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and Alefarm Brewing 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 Alefarm Brewing AS are associated (or correlated) with Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and Agillic AS go up and down completely randomly.
Pair Corralation between Alefarm Brewing and Agillic AS
Assuming the 90 days trading horizon Alefarm Brewing AS is expected to generate 2.67 times more return on investment than Agillic AS. However, Alefarm Brewing is 2.67 times more volatile than Agillic AS. It trades about 0.03 of its potential returns per unit of risk. Agillic AS is currently generating about -0.07 per unit of risk. If you would invest 126.00 in Alefarm Brewing AS on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Alefarm Brewing AS or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alefarm Brewing AS vs. Agillic AS
Performance |
| Timeline |
| Alefarm Brewing AS |
| Agillic AS |
Alefarm Brewing and Agillic AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alefarm Brewing and Agillic AS
The main advantage of trading using opposite Alefarm Brewing and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alefarm Brewing position performs unexpectedly, Agillic 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 Agillic AS will offset losses from the drop in Agillic AS's long position.| Alefarm Brewing vs. Bavarian Nordic | Alefarm Brewing vs. Investeringsselskabet Luxor AS | Alefarm Brewing vs. cBrain AS | Alefarm Brewing vs. Fast Ejendom |
| Agillic AS vs. Nordea Bank Abp | Agillic AS vs. BankInvest Value Globale | Agillic AS vs. Ringkjoebing Landbobank AS | Agillic AS vs. Skjern Bank 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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