Correlation Between Hyloris Developmentsen and AGFA Gevaert
Can any of the company-specific risk be diversified away by investing in both Hyloris Developmentsen 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 Hyloris Developmentsen and AGFA Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyloris Developmentsen Sa and AGFA Gevaert NV, you can compare the effects of market volatilities on Hyloris Developmentsen 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 Hyloris Developmentsen with a short position of AGFA Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyloris Developmentsen and AGFA Gevaert.
Diversification Opportunities for Hyloris Developmentsen and AGFA Gevaert
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyloris and AGFA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hyloris Developmentsen 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 Hyloris Developmentsen 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 Hyloris Developmentsen 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 Hyloris Developmentsen i.e., Hyloris Developmentsen and AGFA Gevaert go up and down completely randomly.
Pair Corralation between Hyloris Developmentsen and AGFA Gevaert
Assuming the 90 days trading horizon Hyloris Developmentsen Sa is expected to generate 1.89 times more return on investment than AGFA Gevaert. However, Hyloris Developmentsen is 1.89 times more volatile than AGFA Gevaert NV. It trades about -0.01 of its potential returns per unit of risk. AGFA Gevaert NV is currently generating about -0.09 per unit of risk. If you would invest 1,170 in Hyloris Developmentsen Sa on August 29, 2024 and sell it today you would lose (608.00) from holding Hyloris Developmentsen Sa or give up 51.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyloris Developmentsen Sa vs. AGFA Gevaert NV
Performance |
| Timeline |
| Hyloris Developmentsen |
| AGFA Gevaert NV |
Hyloris Developmentsen and AGFA Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyloris Developmentsen and AGFA Gevaert
The main advantage of trading using opposite Hyloris Developmentsen and AGFA Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyloris Developmentsen 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.| Hyloris Developmentsen vs. Biocartis Group NV | Hyloris Developmentsen vs. Argen X | Hyloris Developmentsen vs. Barco NV | Hyloris Developmentsen vs. Nyxoah |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |