Correlation Between Agora and Elis SA
Can any of the company-specific risk be diversified away by investing in both Agora and Elis SA 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 Agora and Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agora Inc and Elis SA, you can compare the effects of market volatilities on Agora and Elis SA 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 Agora with a short position of Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agora and Elis SA.
Diversification Opportunities for Agora and Elis SA
Very good diversification
The 3 months correlation between Agora and Elis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA and Agora 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 Agora Inc are associated (or correlated) with Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of Agora i.e., Agora and Elis SA go up and down completely randomly.
Pair Corralation between Agora and Elis SA
If you would invest 434.00 in Agora Inc on October 23, 2024 and sell it today you would earn a total of 47.00 from holding Agora Inc or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Agora Inc vs. Elis SA
Performance |
| Timeline |
| Agora Inc |
| Elis SA |
Agora and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agora and Elis SA
The main advantage of trading using opposite Agora and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agora position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.The idea behind Agora Inc and Elis SA 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.| Elis SA vs. Maximus | Elis SA vs. Network 1 Technologies | Elis SA vs. First Advantage Corp | Elis SA vs. BrightView Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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