Correlation Between Anaergia and Agilyx AS

Can any of the company-specific risk be diversified away by investing in both Anaergia 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 Anaergia and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anaergia and Agilyx AS, you can compare the effects of market volatilities on Anaergia 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 Anaergia with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anaergia and Agilyx AS.

Diversification Opportunities for Anaergia and Agilyx AS

0.27

Correlation Coefficient

Anaergia  Agilyx AS

Modest diversification

The 3 months correlation between Anaergia and Agilyx is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Anaergia and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Anaergia 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 Anaergia 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 Anaergia i.e., Anaergia and Agilyx AS go up and down completely randomly.

Pair Corralation between Anaergia and Agilyx AS

Assuming the 90 days horizon Anaergia is expected to generate 8.07 times more return on investment than Agilyx AS. However, Anaergia is 8.07 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 0.09 per unit of risk. If you would invest  41.00  in Anaergia on August 8, 2024 and sell it today you would earn a total of  24.00  from holding Anaergia or generate 58.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Anaergia  vs.  Agilyx AS

Anaergia

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anaergia are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Anaergia reported solid returns over the last few months and may actually be approaching a breakup point.

Agilyx AS

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agilyx AS are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Agilyx AS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anaergia and Agilyx AS

The main advantage of trading using opposite Anaergia and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anaergia 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.

The idea behind Anaergia and Agilyx AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.