Correlation Between BacTech Environmental and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both BacTech Environmental and Agilyx 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 BacTech Environmental and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BacTech Environmental and Agilyx AS, you can compare the effects of market volatilities on BacTech Environmental and Agilyx 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 BacTech Environmental with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BacTech Environmental and Agilyx AS.
Diversification Opportunities for BacTech Environmental and Agilyx AS
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BacTech and Agilyx is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding BacTech Environmental and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and BacTech Environmental 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 BacTech Environmental are associated (or correlated) with Agilyx AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilyx AS has no effect on the direction of BacTech Environmental i.e., BacTech Environmental and Agilyx AS go up and down completely randomly.
Pair Corralation between BacTech Environmental and Agilyx AS
Assuming the 90 days horizon BacTech Environmental is expected to generate 5.26 times more return on investment than Agilyx AS. However, BacTech Environmental is 5.26 times more volatile than Agilyx AS. It trades about 0.18 of its potential returns per unit of risk. Agilyx AS is currently generating about -0.4 per unit of risk. If you would invest 2.30 in BacTech Environmental on November 27, 2024 and sell it today you would earn a total of 0.69 from holding BacTech Environmental or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BacTech Environmental vs. Agilyx AS
Performance |
| Timeline |
| BacTech Environmental |
| Agilyx AS |
BacTech Environmental and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BacTech Environmental and Agilyx AS
The main advantage of trading using opposite BacTech Environmental and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BacTech Environmental position performs unexpectedly, Agilyx 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 Agilyx AS will offset losses from the drop in Agilyx AS's long position.| BacTech Environmental vs. Agilyx AS | BacTech Environmental vs. EcoPlus | BacTech Environmental vs. BQE Water | BacTech Environmental vs. LiCycle Holdings Corp |
| Agilyx AS vs. Mongolia Growth Group | Agilyx AS vs. Pulse Seismic | Agilyx AS vs. IBC Advanced Alloys | Agilyx AS vs. Ag Growth International |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |