Correlation Between Six Flags and Agillic AS

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

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

Diversification Opportunities for Six Flags and Agillic AS

-0.15

Correlation Coefficient

Six Flags  Agillic AS

Good diversification

The 3 months correlation between Six and Agillic is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and Six Flags 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 Six Flags Entertainment are associated (or correlated) with Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of Six Flags i.e., Six Flags and Agillic AS go up and down completely randomly.

Pair Corralation between Six Flags and Agillic AS

Considering the 90-day investment horizon Six Flags Entertainment is expected to under-perform the Agillic AS. But the stock apears to be less risky and, when comparing its historical volatility, Six Flags Entertainment is 1.49 times less risky than Agillic AS. The stock trades about -0.26 of its potential returns per unit of risk. The Agillic AS is currently generating about -0.11 of returns per unit of risk over similar time horizon. 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	90.48%
Values	Daily Returns

Six Flags Entertainment  vs.  Agillic AS

Six Flags Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Six Flags Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Six Flags is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Six Flags and Agillic AS

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

The idea behind Six Flags Entertainment and Agillic 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.