Correlation Between Zenith Energy and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both Zenith Energy 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 Zenith Energy and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zenith Energy and Agilyx AS, you can compare the effects of market volatilities on Zenith Energy 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 Zenith Energy with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zenith Energy and Agilyx AS.
Diversification Opportunities for Zenith Energy and Agilyx AS
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zenith and Agilyx is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Zenith Energy and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Zenith Energy 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 Zenith Energy 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 Zenith Energy i.e., Zenith Energy and Agilyx AS go up and down completely randomly.
Pair Corralation between Zenith Energy and Agilyx AS
Assuming the 90 days trading horizon Zenith Energy is expected to generate 4.05 times more return on investment than Agilyx AS. However, Zenith Energy is 4.05 times more volatile than Agilyx AS. It trades about 0.12 of its potential returns per unit of risk. Agilyx AS is currently generating about 0.03 per unit of risk. If you would invest 17.00 in Zenith Energy on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Zenith Energy or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zenith Energy vs. Agilyx AS
Performance |
| Timeline |
| Zenith Energy |
| Agilyx AS |
Zenith Energy and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zenith Energy and Agilyx AS
The main advantage of trading using opposite Zenith Energy and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zenith Energy 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.| Zenith Energy vs. Kongsberg Automotive Holding | Zenith Energy vs. Questerre Energy | Zenith Energy vs. Okea ASA | Zenith Energy vs. Hunter Group ASA |
| Agilyx AS vs. Vow ASA | Agilyx AS vs. Everfuel AS | Agilyx AS vs. Aker Carbon Capture | Agilyx AS vs. HydrogenPro 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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