Correlation Between Everfuel and Agilyx AS

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

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

Diversification Opportunities for Everfuel and Agilyx AS

0.03

Correlation Coefficient

Everfuel  Agilyx AS

Significant diversification

The 3 months correlation between Everfuel and Agilyx is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Everfuel AS and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Everfuel 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 Everfuel AS 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 Everfuel i.e., Everfuel and Agilyx AS go up and down completely randomly.

Pair Corralation between Everfuel and Agilyx AS

Assuming the 90 days trading horizon Everfuel is expected to generate 24.27 times less return on investment than Agilyx AS. But when comparing it to its historical volatility, Everfuel AS is 1.66 times less risky than Agilyx AS. It trades about 0.01 of its potential returns per unit of risk. Agilyx AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,955  in Agilyx AS on September 15, 2024 and sell it today you would earn a total of  545.00  from holding Agilyx AS or generate 18.44% return on investment over 90 days.

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

Everfuel AS  vs.  Agilyx AS

Everfuel AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everfuel AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Everfuel is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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.

Pair Trading with Everfuel and Agilyx AS

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

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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.