Correlation Between AGM Group and AstroNova

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

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

Diversification Opportunities for AGM Group and AstroNova

-0.36

Correlation Coefficient

AGM Group  AstroNova

Very good diversification

The 3 months correlation between AGM and AstroNova is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and AGM Group 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 AGM Group Holdings are associated (or correlated) with AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of AGM Group i.e., AGM Group and AstroNova go up and down completely randomly.

Pair Corralation between AGM Group and AstroNova

Given the investment horizon of 90 days AGM Group Holdings is expected to generate 2.52 times more return on investment than AstroNova. However, AGM Group is 2.52 times more volatile than AstroNova. It trades about 0.03 of its potential returns per unit of risk. AstroNova is currently generating about 0.03 per unit of risk. If you would invest  162.00  in AGM Group Holdings on September 2, 2024 and sell it today you would earn a total of  18.00  from holding AGM Group Holdings or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.79%
Values	Daily Returns

AGM Group Holdings  vs.  AstroNova

AGM Group Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AGM Group Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain primary indicators, AGM Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

AstroNova

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AstroNova are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AstroNova is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AGM Group and AstroNova

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

The idea behind AGM Group Holdings and AstroNova 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.