Correlation Between Agilyx AS and Avalon Holdings

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

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

Diversification Opportunities for Agilyx AS and Avalon Holdings

0.47

Correlation Coefficient

Agilyx AS  Avalon Holdings

Very weak diversification

The 3 months correlation between Agilyx and Avalon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agilyx AS and Avalon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalon Holdings and Agilyx 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 Agilyx AS are associated (or correlated) with Avalon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalon Holdings has no effect on the direction of Agilyx AS i.e., Agilyx AS and Avalon Holdings go up and down completely randomly.

Pair Corralation between Agilyx AS and Avalon Holdings

Assuming the 90 days horizon Agilyx AS is expected to under-perform the Avalon Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, Agilyx AS is 1.62 times less risky than Avalon Holdings. The otc stock trades about -0.12 of its potential returns per unit of risk. The Avalon Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  348.00  in Avalon Holdings on December 29, 2024 and sell it today you would lose (55.00) from holding Avalon Holdings or give up 15.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Agilyx AS  vs.  Avalon Holdings

Agilyx AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agilyx AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Avalon Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avalon Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Agilyx AS and Avalon Holdings

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

The idea behind Agilyx AS and Avalon Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.