Correlation Between Ringkjoebing Landbobank and Agillic AS
Can any of the company-specific risk be diversified away by investing in both Ringkjoebing Landbobank and Agillic 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 Ringkjoebing Landbobank and Agillic AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ringkjoebing Landbobank AS and Agillic AS, you can compare the effects of market volatilities on Ringkjoebing Landbobank and Agillic 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 Ringkjoebing Landbobank with a short position of Agillic AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ringkjoebing Landbobank and Agillic AS.
Diversification Opportunities for Ringkjoebing Landbobank and Agillic AS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ringkjoebing and Agillic is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ringkjoebing Landbobank AS and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and Ringkjoebing Landbobank 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 Ringkjoebing Landbobank AS are associated (or correlated) with Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of Ringkjoebing Landbobank i.e., Ringkjoebing Landbobank and Agillic AS go up and down completely randomly.
Pair Corralation between Ringkjoebing Landbobank and Agillic AS
Assuming the 90 days trading horizon Ringkjoebing Landbobank AS is expected to generate 0.58 times more return on investment than Agillic AS. However, Ringkjoebing Landbobank AS is 1.73 times less risky than Agillic AS. It trades about 0.04 of its potential returns per unit of risk. Agillic AS is currently generating about -0.1 per unit of risk. If you would invest 100,535 in Ringkjoebing Landbobank AS on September 12, 2024 and sell it today you would earn a total of 16,765 from holding Ringkjoebing Landbobank AS or generate 16.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ringkjoebing Landbobank AS vs. Agillic AS
Performance |
| Timeline |
| Ringkjoebing Landbobank |
| Agillic AS |
Ringkjoebing Landbobank and Agillic AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ringkjoebing Landbobank and Agillic AS
The main advantage of trading using opposite Ringkjoebing Landbobank and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ringkjoebing Landbobank position performs unexpectedly, Agillic 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 Agillic AS will offset losses from the drop in Agillic AS's long position.| Ringkjoebing Landbobank vs. FLSmidth Co | Ringkjoebing Landbobank vs. Danske Bank AS | Ringkjoebing Landbobank vs. ISS AS | Ringkjoebing Landbobank vs. DSV Panalpina AS |
| Agillic AS vs. Nordea Bank Abp | Agillic AS vs. BankInvest Value Globale | Agillic AS vs. Ringkjoebing Landbobank AS | Agillic AS vs. Skjern Bank 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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