Correlation Between Roularta and AGFA Gevaert
Can any of the company-specific risk be diversified away by investing in both Roularta 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 Roularta and AGFA Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roularta and AGFA Gevaert NV, you can compare the effects of market volatilities on Roularta 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 Roularta with a short position of AGFA Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roularta and AGFA Gevaert.
Diversification Opportunities for Roularta and AGFA Gevaert
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Roularta and AGFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Roularta 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 Roularta 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 Roularta 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 Roularta i.e., Roularta and AGFA Gevaert go up and down completely randomly.
Pair Corralation between Roularta and AGFA Gevaert
If you would invest (100.00) in AGFA Gevaert NV on October 25, 2024 and sell it today you would earn a total of 100.00 from holding AGFA Gevaert NV or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Roularta vs. AGFA Gevaert NV
Performance |
| Timeline |
| Roularta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| AGFA Gevaert NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Roularta and AGFA Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roularta and AGFA Gevaert
The main advantage of trading using opposite Roularta and AGFA Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roularta 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.| Roularta vs. Tessenderlo | Roularta vs. EVS Broadcast Equipment | Roularta vs. Sipef NV | Roularta vs. Exmar NV |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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