Correlation Between Appian Corp and AGF AS
Can any of the company-specific risk be diversified away by investing in both Appian Corp and AGF 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 Appian Corp and AGF AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appian Corp and AGF AS, you can compare the effects of market volatilities on Appian Corp and AGF 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 Appian Corp with a short position of AGF AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appian Corp and AGF AS.
Diversification Opportunities for Appian Corp and AGF AS
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Appian and AGF is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Appian Corp and AGF AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF AS and Appian Corp 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 Appian Corp are associated (or correlated) with AGF AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF AS has no effect on the direction of Appian Corp i.e., Appian Corp and AGF AS go up and down completely randomly.
Pair Corralation between Appian Corp and AGF AS
Given the investment horizon of 90 days Appian Corp is expected to generate 2.04 times less return on investment than AGF AS. In addition to that, Appian Corp is 1.73 times more volatile than AGF AS. It trades about 0.01 of its total potential returns per unit of risk. AGF AS is currently generating about 0.02 per unit of volatility. If you would invest 54.00 in AGF AS on January 25, 2024 and sell it today you would earn a total of 9.00 from holding AGF AS or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Appian Corp vs. AGF AS
Performance |
| Timeline |
| Appian Corp |
| AGF AS |
Appian Corp and AGF AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appian Corp and AGF AS
The main advantage of trading using opposite Appian Corp and AGF AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appian Corp position performs unexpectedly, AGF 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 AGF AS will offset losses from the drop in AGF AS's long position.| Appian Corp vs. Block Inc | Appian Corp vs. Adobe Systems Incorporated | Appian Corp vs. Crowdstrike Holdings | Appian Corp vs. Cloudflare |
| AGF AS vs. Tivoli AS | AGF AS vs. PARKEN Sport Entertainment | AGF AS vs. Broendbyernes IF Fodbold | AGF AS vs. Silkeborg IF Invest |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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