Correlation Between Agillic AS and Roblon AS

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

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

Diversification Opportunities for Agillic AS and Roblon AS

-0.69

Correlation Coefficient

Agillic AS  Roblon AS

Excellent diversification

The 3 months correlation between Agillic and Roblon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Agillic AS and Roblon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roblon 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 Roblon AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roblon AS has no effect on the direction of Agillic AS i.e., Agillic AS and Roblon AS go up and down completely randomly.

Pair Corralation between Agillic AS and Roblon AS

Assuming the 90 days trading horizon Agillic AS is expected to under-perform the Roblon AS. But the stock apears to be less risky and, when comparing its historical volatility, Agillic AS is 3.98 times less risky than Roblon AS. The stock trades about -0.29 of its potential returns per unit of risk. The Roblon AS is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  10,200  in Roblon AS on October 26, 2024 and sell it today you would earn a total of  1,100  from holding Roblon AS or generate 10.78% return on investment over 90 days.

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

Agillic AS  vs.  Roblon 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 unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Roblon AS

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Roblon AS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating essential indicators, Roblon AS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agillic AS and Roblon AS

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

The idea behind Agillic AS and Roblon 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.