Correlation Between BankInvest Value and Agillic AS

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

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

Diversification Opportunities for BankInvest Value and Agillic AS

-0.81

Correlation Coefficient

BankInvest Value  Agillic AS

Pay attention - limited upside

The 3 months correlation between BankInvest and Agillic is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Value Globale and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and BankInvest Value 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 BankInvest Value Globale 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 BankInvest Value i.e., BankInvest Value and Agillic AS go up and down completely randomly.

Pair Corralation between BankInvest Value and Agillic AS

Assuming the 90 days trading horizon BankInvest Value Globale is expected to generate 0.46 times more return on investment than Agillic AS. However, BankInvest Value Globale is 2.16 times less risky than Agillic AS. It trades about 0.21 of its potential returns per unit of risk. Agillic AS is currently generating about -0.08 per unit of risk. If you would invest  9,920  in BankInvest Value Globale on September 13, 2024 and sell it today you would earn a total of  800.00  from holding BankInvest Value Globale or generate 8.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	82.81%
Values	Daily Returns

BankInvest Value Globale  vs.  Agillic AS

BankInvest Value Globale

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Value Globale are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, BankInvest Value may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 weak 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.

Pair Trading with BankInvest Value and Agillic AS

The main advantage of trading using opposite BankInvest Value and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Value 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 BankInvest Value Globale 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.