Correlation Between AGFA Gevaert and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both AGFA Gevaert and NYSE Composite 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 AGFA Gevaert and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFA Gevaert NV and NYSE Composite, you can compare the effects of market volatilities on AGFA Gevaert and NYSE Composite 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 AGFA Gevaert with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFA Gevaert and NYSE Composite.
Diversification Opportunities for AGFA Gevaert and NYSE Composite
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGFA and NYSE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGFA Gevaert NV and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and AGFA Gevaert 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 AGFA Gevaert NV are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of AGFA Gevaert i.e., AGFA Gevaert and NYSE Composite go up and down completely randomly.
Pair Corralation between AGFA Gevaert and NYSE Composite
If you would invest (100.00) in AGFA Gevaert NV on January 29, 2024 and sell it today you would earn a total of 100.00 from holding AGFA Gevaert NV or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
AGFA Gevaert NV vs. NYSE Composite
Performance |
Timeline |
AGFA Gevaert and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
AGFA Gevaert NV
Pair trading matchups for AGFA Gevaert
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with AGFA Gevaert and NYSE Composite
The main advantage of trading using opposite AGFA Gevaert and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFA Gevaert position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.AGFA Gevaert vs. NV Bekaert SA | AGFA Gevaert vs. Barco NV | AGFA Gevaert vs. EVS Broadcast Equipment | AGFA Gevaert vs. ageas SANV |
NYSE Composite vs. American Eagle Outfitters | NYSE Composite vs. Royal Bank of | NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Newpark Resources |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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