Correlation Between Celyad SA and AGFA Gevaert
Can any of the company-specific risk be diversified away by investing in both Celyad SA and AGFA Gevaert 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 Celyad SA and AGFA Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and AGFA Gevaert NV, you can compare the effects of market volatilities on Celyad SA and AGFA Gevaert 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 Celyad SA with a short position of AGFA Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and AGFA Gevaert.
Diversification Opportunities for Celyad SA and AGFA Gevaert
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celyad and AGFA is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and AGFA Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFA Gevaert NV and Celyad SA 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 Celyad SA are associated (or correlated) with AGFA Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFA Gevaert NV has no effect on the direction of Celyad SA i.e., Celyad SA and AGFA Gevaert go up and down completely randomly.
Pair Corralation between Celyad SA and AGFA Gevaert
Assuming the 90 days trading horizon Celyad SA is expected to generate 2.9 times more return on investment than AGFA Gevaert. However, Celyad SA is 2.9 times more volatile than AGFA Gevaert NV. It trades about 0.08 of its potential returns per unit of risk. AGFA Gevaert NV is currently generating about -0.03 per unit of risk. If you would invest 36.00 in Celyad SA on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Celyad SA or generate 102.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celyad SA vs. AGFA Gevaert NV
Performance |
| Timeline |
| Celyad SA |
| AGFA Gevaert NV |
Celyad SA and AGFA Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and AGFA Gevaert
The main advantage of trading using opposite Celyad SA and AGFA Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA position performs unexpectedly, AGFA Gevaert 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 AGFA Gevaert will offset losses from the drop in AGFA Gevaert's long position.| Celyad SA vs. Retail Estates | Celyad SA vs. Shurgard Self Storage | Celyad SA vs. Onward Medical NV | Celyad SA vs. Vastned Retail Belgium |
| AGFA Gevaert vs. NV Bekaert SA | AGFA Gevaert vs. Barco NV | AGFA Gevaert vs. EVS Broadcast Equipment | AGFA Gevaert vs. Nyrstar NV |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |