Correlation Between Small Cap and AGL Energy
Can any of the company-specific risk be diversified away by investing in both Small Cap and AGL Energy 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 Small Cap and AGL Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Premium and AGL Energy Limited, you can compare the effects of market volatilities on Small Cap and AGL Energy 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 Small Cap with a short position of AGL Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Cap and AGL Energy.
Diversification Opportunities for Small Cap and AGL Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Small and AGL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Premium and AGL Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGL Energy Limited and Small Cap 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 Small Cap Premium are associated (or correlated) with AGL Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGL Energy Limited has no effect on the direction of Small Cap i.e., Small Cap and AGL Energy go up and down completely randomly.
Pair Corralation between Small Cap and AGL Energy
If you would invest 2,394 in Small Cap Premium on September 12, 2024 and sell it today you would earn a total of 62.00 from holding Small Cap Premium or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Small Cap Premium vs. AGL Energy Limited
Performance |
| Timeline |
| Small Cap Premium |
| AGL Energy Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Small Cap and AGL Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Cap and AGL Energy
The main advantage of trading using opposite Small Cap and AGL Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Cap position performs unexpectedly, AGL Energy 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 AGL Energy will offset losses from the drop in AGL Energy's long position.| Small Cap vs. RiverNorth Specialty Finance | Small Cap vs. Royce Micro Cap | Small Cap vs. First Trust Enhanced | Small Cap vs. Voya Global Advantage |
| AGL Energy vs. Sonida Senior Living | AGL Energy vs. Codexis | AGL Energy vs. Braskem SA Class | AGL Energy vs. Teleflex Incorporated |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |