Correlation Between AGBAW Old and AGBA Old

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

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

Diversification Opportunities for AGBAW Old and AGBA Old

0.58

Correlation Coefficient

AGBAW Old  AGBA Old

Very weak diversification

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

Pair Corralation between AGBAW Old and AGBA Old

If you would invest  560.00  in AGBA Old on October 9, 2024 and sell it today you would earn a total of  0.00  from holding AGBA Old or generate 0.0% return on investment over 90 days.

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

AGBAW Old  vs.  AGBA Old

AGBAW Old

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days AGBAW Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, AGBAW Old showed solid returns over the last few months and may actually be approaching a breakup point.

AGBA Old

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days AGBA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat inconsistent fundamental drivers, AGBA Old sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AGBAW Old and AGBA Old

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

The idea behind AGBAW Old and AGBA Old 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.