Correlation Between AGBAW Old and Brilliant Acquisition

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

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

Diversification Opportunities for AGBAW Old and Brilliant Acquisition

0.0

Correlation Coefficient

AGBAW Old  Brilliant Acquisition

Pay attention - limited upside

The 3 months correlation between AGBAW and Brilliant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGBAW Old and Brilliant Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brilliant Acquisition 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 Brilliant Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brilliant Acquisition has no effect on the direction of AGBAW Old i.e., AGBAW Old and Brilliant Acquisition go up and down completely randomly.

Pair Corralation between AGBAW Old and Brilliant Acquisition

If you would invest (100.00) in Brilliant Acquisition on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Brilliant Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGBAW Old  vs.  Brilliant Acquisition

AGBAW Old

Risk-Adjusted Performance

Very Weak

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 stable basic indicators, AGBAW Old is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Brilliant Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brilliant Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, Brilliant Acquisition is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AGBAW Old and Brilliant Acquisition

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

The idea behind AGBAW Old and Brilliant Acquisition 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.