Correlation Between UIE PLC and Agat Ejendomme
Can any of the company-specific risk be diversified away by investing in both UIE PLC and Agat Ejendomme 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 UIE PLC and Agat Ejendomme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UIE PLC and Agat Ejendomme AS, you can compare the effects of market volatilities on UIE PLC and Agat Ejendomme 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 UIE PLC with a short position of Agat Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of UIE PLC and Agat Ejendomme.
Diversification Opportunities for UIE PLC and Agat Ejendomme
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UIE and Agat is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding UIE PLC and Agat Ejendomme AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agat Ejendomme AS and UIE PLC 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 UIE PLC are associated (or correlated) with Agat Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agat Ejendomme AS has no effect on the direction of UIE PLC i.e., UIE PLC and Agat Ejendomme go up and down completely randomly.
Pair Corralation between UIE PLC and Agat Ejendomme
Assuming the 90 days trading horizon UIE PLC is expected to generate 0.62 times more return on investment than Agat Ejendomme. However, UIE PLC is 1.62 times less risky than Agat Ejendomme. It trades about 0.12 of its potential returns per unit of risk. Agat Ejendomme AS is currently generating about -0.08 per unit of risk. If you would invest 29,700 in UIE PLC on October 26, 2024 and sell it today you would earn a total of 1,100 from holding UIE PLC or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UIE PLC vs. Agat Ejendomme AS
Performance |
| Timeline |
| UIE PLC |
| Agat Ejendomme AS |
UIE PLC and Agat Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UIE PLC and Agat Ejendomme
The main advantage of trading using opposite UIE PLC and Agat Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UIE PLC position performs unexpectedly, Agat Ejendomme 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 Agat Ejendomme will offset losses from the drop in Agat Ejendomme's long position.| UIE PLC vs. Per Aarsleff Holding | UIE PLC vs. Schouw Co | UIE PLC vs. Ringkjoebing Landbobank AS | UIE PLC vs. Jeudan |
| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |