Correlation Between Agfa Gevaert and Cirmaker Technology
Can any of the company-specific risk be diversified away by investing in both Agfa Gevaert and Cirmaker Technology 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 Cirmaker Technology 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 Cirmaker Technology, you can compare the effects of market volatilities on Agfa Gevaert and Cirmaker Technology 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 Cirmaker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agfa Gevaert and Cirmaker Technology.
Diversification Opportunities for Agfa Gevaert and Cirmaker Technology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agfa and Cirmaker is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Agfa Gevaert NV and Cirmaker Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirmaker Technology 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 Cirmaker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirmaker Technology has no effect on the direction of Agfa Gevaert i.e., Agfa Gevaert and Cirmaker Technology go up and down completely randomly.
Pair Corralation between Agfa Gevaert and Cirmaker Technology
Assuming the 90 days horizon Agfa Gevaert NV is expected to under-perform the Cirmaker Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, Agfa Gevaert NV is 29.64 times less risky than Cirmaker Technology. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Cirmaker Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Cirmaker Technology on August 28, 2025 and sell it today you would lose (5.80) from holding Cirmaker Technology or give up 58.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agfa Gevaert NV vs. Cirmaker Technology
Performance |
| Timeline |
| Agfa Gevaert NV |
| Cirmaker Technology |
Agfa Gevaert and Cirmaker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agfa Gevaert and Cirmaker Technology
The main advantage of trading using opposite Agfa Gevaert and Cirmaker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agfa Gevaert position performs unexpectedly, Cirmaker Technology 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 Cirmaker Technology will offset losses from the drop in Cirmaker Technology's long position.| Agfa Gevaert vs. TAL Education Group | Agfa Gevaert vs. New Oriental Education | Agfa Gevaert vs. Kid Castle Educational | Agfa Gevaert vs. Strategic Education |
| Cirmaker Technology vs. PSI Software AG | Cirmaker Technology vs. IBITX Software | Cirmaker Technology vs. Asure Software | Cirmaker Technology vs. Avecho Biotechnology Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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