Correlation Between Ennogie Solar and Agat Ejendomme
Can any of the company-specific risk be diversified away by investing in both Ennogie Solar and Agat Ejendomme 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 Ennogie Solar and Agat Ejendomme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ennogie Solar Group and Agat Ejendomme AS, you can compare the effects of market volatilities on Ennogie Solar and Agat Ejendomme 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 Ennogie Solar with a short position of Agat Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ennogie Solar and Agat Ejendomme.
Diversification Opportunities for Ennogie Solar and Agat Ejendomme
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ennogie and Agat is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ennogie Solar Group and Agat Ejendomme AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agat Ejendomme AS and Ennogie Solar 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 Ennogie Solar Group are associated (or correlated) with Agat Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agat Ejendomme AS has no effect on the direction of Ennogie Solar i.e., Ennogie Solar and Agat Ejendomme go up and down completely randomly.
Pair Corralation between Ennogie Solar and Agat Ejendomme
Assuming the 90 days trading horizon Ennogie Solar Group is expected to under-perform the Agat Ejendomme. In addition to that, Ennogie Solar is 2.0 times more volatile than Agat Ejendomme AS. It trades about -0.06 of its total potential returns per unit of risk. Agat Ejendomme AS is currently generating about -0.04 per unit of volatility. If you would invest 205.00 in Agat Ejendomme AS on September 12, 2024 and sell it today you would lose (65.00) from holding Agat Ejendomme AS or give up 31.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ennogie Solar Group vs. Agat Ejendomme AS
Performance |
| Timeline |
| Ennogie Solar Group |
| Agat Ejendomme AS |
Ennogie Solar and Agat Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ennogie Solar and Agat Ejendomme
The main advantage of trading using opposite Ennogie Solar and Agat Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ennogie Solar position performs unexpectedly, Agat Ejendomme 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 Agat Ejendomme will offset losses from the drop in Agat Ejendomme's long position.| Ennogie Solar vs. Green Hydrogen Systems | Ennogie Solar vs. ALK Abell AS | Ennogie Solar vs. H Lundbeck AS | Ennogie Solar vs. TORM plc |
| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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