Correlation Between Agillic AS and ChemoMetec

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

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

Diversification Opportunities for Agillic AS and ChemoMetec

-0.03

Correlation Coefficient

Agillic AS  ChemoMetec

Good diversification

The 3 months correlation between Agillic and ChemoMetec is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Agillic AS and ChemoMetec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChemoMetec AS and Agillic AS 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 Agillic AS are associated (or correlated) with ChemoMetec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChemoMetec AS has no effect on the direction of Agillic AS i.e., Agillic AS and ChemoMetec go up and down completely randomly.

Pair Corralation between Agillic AS and ChemoMetec

Assuming the 90 days trading horizon Agillic AS is expected to generate 0.39 times more return on investment than ChemoMetec. However, Agillic AS is 2.55 times less risky than ChemoMetec. It trades about -0.11 of its potential returns per unit of risk. ChemoMetec AS is currently generating about -0.35 per unit of risk. If you would invest  1,280  in Agillic AS on January 26, 2024 and sell it today you would lose (60.00) from holding Agillic AS or give up 4.69% of portfolio value over 90 days.

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

Agillic AS  vs.  ChemoMetec AS

Agillic AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agillic AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ChemoMetec AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChemoMetec AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Agillic AS and ChemoMetec

The main advantage of trading using opposite Agillic AS and ChemoMetec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agillic AS position performs unexpectedly, ChemoMetec 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 ChemoMetec will offset losses from the drop in ChemoMetec's long position.

The idea behind Agillic AS and ChemoMetec 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.