Correlation Between Agilyx AS and Black Sea

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

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

Diversification Opportunities for Agilyx AS and Black Sea

-0.5

Correlation Coefficient

Agilyx AS  Black Sea

Very good diversification

The 3 months correlation between Agilyx and Black is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Agilyx AS and Black Sea Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Sea Property and Agilyx AS 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 Agilyx AS are associated (or correlated) with Black Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Sea Property has no effect on the direction of Agilyx AS i.e., Agilyx AS and Black Sea go up and down completely randomly.

Pair Corralation between Agilyx AS and Black Sea

Assuming the 90 days trading horizon Agilyx AS is expected to generate 22.87 times less return on investment than Black Sea. But when comparing it to its historical volatility, Agilyx AS is 41.12 times less risky than Black Sea. It trades about 0.18 of its potential returns per unit of risk. Black Sea Property is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Black Sea Property on September 15, 2024 and sell it today you would lose (4.00) from holding Black Sea Property or give up 23.53% of portfolio value over 90 days.

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

Agilyx AS  vs.  Black Sea Property

Agilyx AS

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilyx AS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Agilyx AS disclosed solid returns over the last few months and may actually be approaching a breakup point.

Black Sea Property

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with Agilyx AS and Black Sea

The main advantage of trading using opposite Agilyx AS and Black Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilyx AS position performs unexpectedly, Black Sea 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 Black Sea will offset losses from the drop in Black Sea's long position.

The idea behind Agilyx AS and Black Sea Property 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.