Correlation Between Vow ASA and Agilyx AS

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

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

Diversification Opportunities for Vow ASA and Agilyx AS

-0.52

Correlation Coefficient

Vow ASA  Agilyx AS

Excellent diversification

The 3 months correlation between Vow and Agilyx is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Vow ASA 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 Vow ASA 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 Vow ASA i.e., Vow ASA and Agilyx AS go up and down completely randomly.

Pair Corralation between Vow ASA and Agilyx AS

Assuming the 90 days trading horizon Vow ASA is expected to under-perform the Agilyx AS. In addition to that, Vow ASA is 6.21 times more volatile than Agilyx AS. It trades about -0.01 of its total potential returns per unit of risk. Agilyx AS is currently generating about 0.18 per unit of volatility. If you would invest  2,955  in Agilyx AS on September 16, 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 Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vow ASA  vs.  Agilyx AS

Vow ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vow ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Vow ASA is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional 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 Vow ASA and Agilyx AS

The main advantage of trading using opposite Vow ASA and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA 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 Vow ASA 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.