Correlation Between Alefarm Brewing and Agillic AS

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

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

Diversification Opportunities for Alefarm Brewing and Agillic AS

0.58

Correlation Coefficient

Alefarm Brewing  Agillic AS

Very weak diversification

The 3 months correlation between Alefarm and Agillic is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and Alefarm Brewing 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 Alefarm Brewing AS are associated (or correlated) with Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and Agillic AS go up and down completely randomly.

Pair Corralation between Alefarm Brewing and Agillic AS

Assuming the 90 days trading horizon Alefarm Brewing AS is expected to generate 4.28 times more return on investment than Agillic AS. However, Alefarm Brewing is 4.28 times more volatile than Agillic AS. It trades about 0.1 of its potential returns per unit of risk. Agillic AS is currently generating about 0.08 per unit of risk. If you would invest  142.00  in Alefarm Brewing AS on December 25, 2024 and sell it today you would earn a total of  43.00  from holding Alefarm Brewing AS or generate 30.28% return on investment over 90 days.

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

Alefarm Brewing AS  vs.  Agillic AS

Alefarm Brewing AS

Risk-Adjusted Performance

OK

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

Agillic AS

Risk-Adjusted Performance

Insignificant

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 unfluctuating fundamental indicators, Agillic AS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Alefarm Brewing and Agillic AS

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

The idea behind Alefarm Brewing AS and Agillic 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.