Correlation Between Cambi ASA and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both Cambi ASA 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 Cambi ASA and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambi ASA and Agilyx AS, you can compare the effects of market volatilities on Cambi ASA 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 Cambi ASA with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambi ASA and Agilyx AS.
Diversification Opportunities for Cambi ASA and Agilyx AS
Very weak diversification
The 3 months correlation between Cambi and Agilyx is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cambi ASA and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Cambi ASA 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 Cambi ASA 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 Cambi ASA i.e., Cambi ASA and Agilyx AS go up and down completely randomly.
Pair Corralation between Cambi ASA and Agilyx AS
Assuming the 90 days trading horizon Cambi ASA is expected to under-perform the Agilyx AS. In addition to that, Cambi ASA is 2.07 times more volatile than Agilyx AS. It trades about -0.22 of its total potential returns per unit of risk. Agilyx AS is currently generating about -0.07 per unit of volatility. If you would invest 3,580 in Agilyx AS on September 4, 2024 and sell it today you would lose (80.00) from holding Agilyx AS or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambi ASA vs. Agilyx AS
Performance |
| Timeline |
| Cambi ASA |
| Agilyx AS |
Cambi ASA and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambi ASA and Agilyx AS
The main advantage of trading using opposite Cambi ASA and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambi ASA 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.| Cambi ASA vs. Tomra Systems ASA | Cambi ASA vs. Agilyx AS | Cambi ASA vs. Waste Plastic Upcycling | Cambi ASA vs. Vow Green Metals |
| Agilyx AS vs. Tomra Systems ASA | Agilyx AS vs. Waste Plastic Upcycling | Agilyx AS vs. Cambi ASA | Agilyx AS vs. Vow Green Metals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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