Correlation Between AFC Energy and Intuitive Investments

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

By analyzing existing cross correlation between AFC Energy plc and Intuitive Investments Group, you can compare the effects of market volatilities on AFC Energy and Intuitive Investments 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 AFC Energy with a short position of Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFC Energy and Intuitive Investments.

Diversification Opportunities for AFC Energy and Intuitive Investments

0.58

Correlation Coefficient

AFC Energy  Intuitive Investments

Very weak diversification

The 3 months correlation between AFC and Intuitive is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding AFC Energy plc and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments and AFC Energy 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 AFC Energy plc are associated (or correlated) with Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of AFC Energy i.e., AFC Energy and Intuitive Investments go up and down completely randomly.

Pair Corralation between AFC Energy and Intuitive Investments

Assuming the 90 days trading horizon AFC Energy plc is expected to under-perform the Intuitive Investments. In addition to that, AFC Energy is 3.87 times more volatile than Intuitive Investments Group. It trades about -0.2 of its total potential returns per unit of risk. Intuitive Investments Group is currently generating about -0.02 per unit of volatility. If you would invest  12,200  in Intuitive Investments Group on April 18, 2025 and sell it today you would lose (100.00) from holding Intuitive Investments Group or give up 0.82% of portfolio value over 90 days.

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

AFC Energy plc  vs.  Intuitive Investments Group

AFC Energy plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AFC Energy plc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, AFC Energy exhibited solid returns over the last few months and may actually be approaching a breakup point.

Intuitive Investments

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Investments Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Intuitive Investments exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AFC Energy and Intuitive Investments

The main advantage of trading using opposite AFC Energy and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFC Energy position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.

The idea behind AFC Energy plc and Intuitive Investments Group 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.