Correlation Between Napatech and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both Napatech 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 Napatech and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Napatech AS and Agilyx AS, you can compare the effects of market volatilities on Napatech 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 Napatech with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Napatech and Agilyx AS.
Diversification Opportunities for Napatech and Agilyx AS
Pay attention - limited upside
The 3 months correlation between Napatech and Agilyx is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Napatech AS and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Napatech 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 Napatech AS 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 Napatech i.e., Napatech and Agilyx AS go up and down completely randomly.
Pair Corralation between Napatech and Agilyx AS
Assuming the 90 days trading horizon Napatech AS is expected to generate 1.68 times more return on investment than Agilyx AS. However, Napatech is 1.68 times more volatile than Agilyx AS. It trades about 0.04 of its potential returns per unit of risk. Agilyx AS is currently generating about 0.02 per unit of risk. If you would invest 1,468 in Napatech AS on September 14, 2024 and sell it today you would earn a total of 782.00 from holding Napatech AS or generate 53.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Napatech AS vs. Agilyx AS
Performance |
| Timeline |
| Napatech AS |
| Agilyx AS |
Napatech and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Napatech and Agilyx AS
The main advantage of trading using opposite Napatech and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Napatech 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.| Napatech vs. Idex ASA | Napatech vs. Next Biometrics Group | Napatech vs. Polight ASA | Napatech vs. Kitron ASA |
| Agilyx AS vs. Waste Plastic Upcycling | Agilyx AS vs. Vow Green Metals | Agilyx AS vs. Kongsberg Gruppen ASA | Agilyx AS vs. Napatech 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |