Correlation Between Fagron NV and Argen X
Can any of the company-specific risk be diversified away by investing in both Fagron NV and Argen X 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 Fagron NV and Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fagron NV and Argen X, you can compare the effects of market volatilities on Fagron NV and Argen X 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 Fagron NV with a short position of Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fagron NV and Argen X.
Diversification Opportunities for Fagron NV and Argen X
Good diversification
The 3 months correlation between Fagron and Argen is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fagron NV and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and Fagron NV 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 Fagron NV are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Fagron NV i.e., Fagron NV and Argen X go up and down completely randomly.
Pair Corralation between Fagron NV and Argen X
Assuming the 90 days trading horizon Fagron NV is expected to under-perform the Argen X. But the stock apears to be less risky and, when comparing its historical volatility, Fagron NV is 1.79 times less risky than Argen X. The stock trades about 0.0 of its potential returns per unit of risk. The Argen X is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 34,070 in Argen X on August 29, 2024 and sell it today you would earn a total of 24,170 from holding Argen X or generate 70.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fagron NV vs. Argen X
Performance |
| Timeline |
| Fagron NV |
| Argen X |
Fagron NV and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fagron NV and Argen X
The main advantage of trading using opposite Fagron NV and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fagron NV position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.| Fagron NV vs. Tessenderlo | Fagron NV vs. NV Bekaert SA | Fagron NV vs. Ontex Group NV | Fagron NV vs. Argen X |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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