Correlation Between AGL Resources and Polygon L
Can any of the company-specific risk be diversified away by investing in both AGL Resources and Polygon L 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 AGL Resources and Polygon L into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGL Resources and Polygon L, you can compare the effects of market volatilities on AGL Resources and Polygon L 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 AGL Resources with a short position of Polygon L. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGL Resources and Polygon L.
Diversification Opportunities for AGL Resources and Polygon L
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGL and Polygon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGL Resources and Polygon L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polygon L and AGL Resources 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 AGL Resources are associated (or correlated) with Polygon L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polygon L has no effect on the direction of AGL Resources i.e., AGL Resources and Polygon L go up and down completely randomly.
Pair Corralation between AGL Resources and Polygon L
If you would invest 369,700 in Polygon L on January 20, 2024 and sell it today you would earn a total of 15,300 from holding Polygon L or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGL Resources vs. Polygon L
Performance |
| Timeline |
| AGL Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Polygon L |
AGL Resources and Polygon L Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGL Resources and Polygon L
The main advantage of trading using opposite AGL Resources and Polygon L positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGL Resources position performs unexpectedly, Polygon L 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 Polygon L will offset losses from the drop in Polygon L's long position.| AGL Resources vs. Griffon | AGL Resources vs. Office Properties Income | AGL Resources vs. Postal Realty Trust | AGL Resources vs. HNI Corp |
| Polygon L vs. Migdal Insurance | Polygon L vs. The Phoenix Holdings | Polygon L vs. Harel Insurance Investments | Polygon L vs. Clal Insurance Enterprises |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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