Correlation Between Agfa Gevaert and Golden Energy
Can any of the company-specific risk be diversified away by investing in both Agfa Gevaert and Golden Energy 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 Golden Energy 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 Golden Energy Offshore, you can compare the effects of market volatilities on Agfa Gevaert and Golden Energy 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 Golden Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agfa Gevaert and Golden Energy.
Diversification Opportunities for Agfa Gevaert and Golden Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agfa and Golden is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Agfa Gevaert NV and Golden Energy Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Energy Offshore 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 Golden Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Energy Offshore has no effect on the direction of Agfa Gevaert i.e., Agfa Gevaert and Golden Energy go up and down completely randomly.
Pair Corralation between Agfa Gevaert and Golden Energy
Assuming the 90 days horizon Agfa Gevaert NV is expected to generate 0.59 times more return on investment than Golden Energy. However, Agfa Gevaert NV is 1.69 times less risky than Golden Energy. It trades about -0.15 of its potential returns per unit of risk. Golden Energy Offshore is currently generating about -0.1 per unit of risk. If you would invest 273.00 in Agfa Gevaert NV on August 31, 2025 and sell it today you would lose (44.00) from holding Agfa Gevaert NV or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Agfa Gevaert NV vs. Golden Energy Offshore
Performance |
| Timeline |
| Agfa Gevaert NV |
| Golden Energy Offshore |
Agfa Gevaert and Golden Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agfa Gevaert and Golden Energy
The main advantage of trading using opposite Agfa Gevaert and Golden Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agfa Gevaert position performs unexpectedly, Golden Energy 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 Golden Energy will offset losses from the drop in Golden Energy's long position.| Agfa Gevaert vs. Applied Materials | Agfa Gevaert vs. Yokohama Rubber Co | Agfa Gevaert vs. DATA Communications Management | Agfa Gevaert vs. SCI Engineered Materials |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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