Correlation Between Scandinavian Investment and Agillic AS

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

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

Diversification Opportunities for Scandinavian Investment and Agillic AS

-0.03

Correlation Coefficient

Scandinavian Investment  Agillic AS

Good diversification

The 3 months correlation between Scandinavian and Agillic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Investment Group and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and Scandinavian Investment 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 Scandinavian Investment Group 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 Scandinavian Investment i.e., Scandinavian Investment and Agillic AS go up and down completely randomly.

Pair Corralation between Scandinavian Investment and Agillic AS

Assuming the 90 days trading horizon Scandinavian Investment Group is expected to generate 0.85 times more return on investment than Agillic AS. However, Scandinavian Investment Group is 1.17 times less risky than Agillic AS. It trades about 0.0 of its potential returns per unit of risk. Agillic AS is currently generating about -0.08 per unit of risk. If you would invest  324.00  in Scandinavian Investment Group on October 9, 2024 and sell it today you would lose (10.00) from holding Scandinavian Investment Group or give up 3.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.46%
Values	Daily Returns

Scandinavian Investment Group  vs.  Agillic AS

Scandinavian Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scandinavian Investment Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Scandinavian Investment is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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 unfluctuating 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 Scandinavian Investment and Agillic AS

The main advantage of trading using opposite Scandinavian Investment and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment 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 Scandinavian Investment Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.