Correlation Between Mongolia Growth and Agilyx AS

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

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

Diversification Opportunities for Mongolia Growth and Agilyx AS

-0.29

Correlation Coefficient

Mongolia Growth  Agilyx AS

Very good diversification

The 3 months correlation between Mongolia and Agilyx is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mongolia Growth Group and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Mongolia Growth 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 Mongolia Growth Group 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 Mongolia Growth i.e., Mongolia Growth and Agilyx AS go up and down completely randomly.

Pair Corralation between Mongolia Growth and Agilyx AS

Assuming the 90 days horizon Mongolia Growth Group is expected to under-perform the Agilyx AS. But the pink sheet apears to be less risky and, when comparing its historical volatility, Mongolia Growth Group is 1.11 times less risky than Agilyx AS. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Agilyx AS is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  286.00  in Agilyx AS on September 3, 2024 and sell it today you would earn a total of  34.00  from holding Agilyx AS or generate 11.89% return on investment over 90 days.

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

Mongolia Growth Group  vs.  Agilyx AS

Mongolia Growth Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mongolia Growth Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mongolia Growth is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

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 fragile basic indicators, Agilyx AS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mongolia Growth and Agilyx AS

The main advantage of trading using opposite Mongolia Growth and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mongolia Growth 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 Mongolia Growth Group 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.