Correlation Between BQE Water and Agilyx AS

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

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

Diversification Opportunities for BQE Water and Agilyx AS

0.24

Correlation Coefficient

BQE Water  Agilyx AS

Modest diversification

The 3 months correlation between BQE and Agilyx is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BQE Water and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and BQE Water 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 BQE Water 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 BQE Water i.e., BQE Water and Agilyx AS go up and down completely randomly.

Pair Corralation between BQE Water and Agilyx AS

Assuming the 90 days horizon BQE Water is expected to under-perform the Agilyx AS. But the pink sheet apears to be less risky and, when comparing its historical volatility, BQE Water is 1.18 times less risky than Agilyx AS. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Agilyx AS is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  320.00  in Agilyx AS on December 28, 2024 and sell it today you would lose (57.00) from holding Agilyx AS or give up 17.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

BQE Water  vs.  Agilyx AS

BQE Water

Risk-Adjusted Performance

Very Weak

Over the last 90 days BQE Water has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

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 weak 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 BQE Water and Agilyx AS

The main advantage of trading using opposite BQE Water and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BQE Water 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 BQE Water 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..