Correlation Between Mongolia Growth and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both Mongolia Growth 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 Mongolia Growth and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mongolia Growth Group and Agilyx AS, you can compare the effects of market volatilities on Mongolia Growth 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 Mongolia Growth with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mongolia Growth and Agilyx AS.
Diversification Opportunities for Mongolia Growth and Agilyx AS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mongolia and Agilyx is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mongolia Growth Group and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Mongolia Growth 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 Mongolia Growth Group 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 Mongolia Growth i.e., Mongolia Growth and Agilyx AS go up and down completely randomly.
Pair Corralation between Mongolia Growth and Agilyx AS
Assuming the 90 days horizon Mongolia Growth Group is expected to generate 0.9 times more return on investment than Agilyx AS. However, Mongolia Growth Group is 1.11 times less risky than Agilyx AS. It trades about -0.02 of its potential returns per unit of risk. Agilyx AS is currently generating about -0.29 per unit of risk. If you would invest 89.00 in Mongolia Growth Group on November 3, 2024 and sell it today you would lose (1.00) from holding Mongolia Growth Group or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mongolia Growth Group vs. Agilyx AS
Performance |
| Timeline |
| Mongolia Growth Group |
| Agilyx AS |
Mongolia Growth and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mongolia Growth and Agilyx AS
The main advantage of trading using opposite Mongolia Growth and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mongolia Growth 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.| Mongolia Growth vs. Metrospaces | Mongolia Growth vs. Ke Holdings | Mongolia Growth vs. Ucommune International | Mongolia Growth vs. New Concept Energy |
| Agilyx AS vs. Mongolia Growth Group | Agilyx AS vs. Pulse Seismic | Agilyx AS vs. IBC Advanced Alloys | Agilyx AS vs. Ag Growth International |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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