Correlation Between Avalon Holdings and Agilyx AS

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

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

Diversification Opportunities for Avalon Holdings and Agilyx AS

0.47

Correlation Coefficient

Avalon Holdings  Agilyx AS

Very weak diversification

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

Pair Corralation between Avalon Holdings and Agilyx AS

Considering the 90-day investment horizon Avalon Holdings is expected to generate 1.62 times more return on investment than Agilyx AS. However, Avalon Holdings is 1.62 times more volatile than Agilyx AS. It trades about -0.05 of its potential returns per unit of risk. Agilyx AS is currently generating about -0.12 per unit of risk. 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

Avalon Holdings  vs.  Agilyx AS

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.

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.

Pair Trading with Avalon Holdings and Agilyx AS

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

The idea behind Avalon Holdings and Agilyx 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.