Correlation Between Hiru and Agilyx AS

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

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

Diversification Opportunities for Hiru and Agilyx AS

-0.68

Correlation Coefficient

Hiru  Agilyx AS

Excellent diversification

The 3 months correlation between Hiru and Agilyx is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hiru Corp. and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and Hiru 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 Hiru Corporation 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 Hiru i.e., Hiru and Agilyx AS go up and down completely randomly.

Pair Corralation between Hiru and Agilyx AS

Given the investment horizon of 90 days Hiru Corporation is expected to generate 5.04 times more return on investment than Agilyx AS. However, Hiru is 5.04 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 0.01 per unit of risk. If you would invest  0.21  in Hiru Corporation on September 14, 2024 and sell it today you would lose (0.10) from holding Hiru Corporation or give up 47.62% of portfolio value over 90 days.

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

Hiru Corp.  vs.  Agilyx AS

Hiru

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hiru Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Agilyx AS

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilyx AS are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Agilyx AS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hiru and Agilyx AS

The main advantage of trading using opposite Hiru and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiru 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 Hiru Corporation 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.

Check out your portfolio center.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.