Correlation Between Agillic AS and PF Atlantic

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

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

Diversification Opportunities for Agillic AS and PF Atlantic

-0.33

Correlation Coefficient

Agillic AS  PF Atlantic

Very good diversification

The 3 months correlation between Agillic and ATLA-DKK is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agillic AS and PF Atlantic Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Atlantic Petroleum 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 PF Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Atlantic Petroleum has no effect on the direction of Agillic AS i.e., Agillic AS and PF Atlantic go up and down completely randomly.

Pair Corralation between Agillic AS and PF Atlantic

Assuming the 90 days trading horizon Agillic AS is expected to generate 5.87 times less return on investment than PF Atlantic. But when comparing it to its historical volatility, Agillic AS is 5.74 times less risky than PF Atlantic. It trades about 0.08 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  156.00  in PF Atlantic Petroleum on December 26, 2024 and sell it today you would earn a total of  37.00  from holding PF Atlantic Petroleum or generate 23.72% return on investment over 90 days.

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

Agillic AS  vs.  PF Atlantic Petroleum

Agillic AS

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Agillic AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Agillic AS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

PF Atlantic Petroleum

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PF Atlantic Petroleum are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, PF Atlantic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agillic AS and PF Atlantic

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

The idea behind Agillic AS and PF Atlantic Petroleum 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.