Correlation Between Agillic AS and Vestjysk Bank

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

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

Diversification Opportunities for Agillic AS and Vestjysk Bank

0.04

Correlation Coefficient

Agillic AS  Vestjysk Bank

Significant diversification

The 3 months correlation between Agillic and Vestjysk is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Agillic AS and Vestjysk Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestjysk Bank 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 Vestjysk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestjysk Bank AS has no effect on the direction of Agillic AS i.e., Agillic AS and Vestjysk Bank go up and down completely randomly.

Pair Corralation between Agillic AS and Vestjysk Bank

Assuming the 90 days trading horizon Agillic AS is expected to under-perform the Vestjysk Bank. In addition to that, Agillic AS is 1.43 times more volatile than Vestjysk Bank AS. It trades about -0.09 of its total potential returns per unit of risk. Vestjysk Bank AS is currently generating about 0.2 per unit of volatility. If you would invest  416.00  in Vestjysk Bank AS on October 9, 2024 and sell it today you would earn a total of  33.00  from holding Vestjysk Bank AS or generate 7.93% return on investment over 90 days.

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

Agillic AS  vs.  Vestjysk Bank 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 latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Vestjysk Bank AS

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vestjysk Bank AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Vestjysk Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Agillic AS and Vestjysk Bank

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

The idea behind Agillic AS and Vestjysk Bank 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.