Correlation Between Agile Thrpe and Alimera Sciences

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

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

Diversification Opportunities for Agile Thrpe and Alimera Sciences

-0.68

Correlation Coefficient

Agile Thrpe  Alimera Sciences

Excellent diversification

The 3 months correlation between Agile and Alimera is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Agile Thrpe and Alimera Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimera Sciences and Agile Thrpe 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 Agile Thrpe are associated (or correlated) with Alimera Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimera Sciences has no effect on the direction of Agile Thrpe i.e., Agile Thrpe and Alimera Sciences go up and down completely randomly.

Pair Corralation between Agile Thrpe and Alimera Sciences

If you would invest  552.00  in Alimera Sciences on September 3, 2024 and sell it today you would earn a total of  2.00  from holding Alimera Sciences or generate 0.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	10.0%
Values	Daily Returns

Agile Thrpe  vs.  Alimera Sciences

Agile Thrpe

Risk-Adjusted Performance

0 of 100

Very Weak

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

Alimera Sciences

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Alimera Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Alimera Sciences is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Agile Thrpe and Alimera Sciences

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

The idea behind Agile Thrpe and Alimera Sciences 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.