Correlation Between AGM Group and Cricut

Can any of the company-specific risk be diversified away by investing in both AGM Group and Cricut 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 Cricut 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 Cricut Inc, you can compare the effects of market volatilities on AGM Group and Cricut 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 Cricut. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and Cricut.

Diversification Opportunities for AGM Group and Cricut

0.04

Correlation Coefficient

AGM Group  Cricut

Significant diversification

The 3 months correlation between AGM and Cricut is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Cricut Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cricut Inc 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 Cricut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cricut Inc has no effect on the direction of AGM Group i.e., AGM Group and Cricut go up and down completely randomly.

Pair Corralation between AGM Group and Cricut

Given the investment horizon of 90 days AGM Group Holdings is expected to generate 2.05 times more return on investment than Cricut. However, AGM Group is 2.05 times more volatile than Cricut Inc. It trades about 0.13 of its potential returns per unit of risk. Cricut Inc is currently generating about 0.05 per unit of risk. If you would invest  55.00  in AGM Group Holdings on September 29, 2024 and sell it today you would earn a total of  70.00  from holding AGM Group Holdings or generate 127.27% return on investment over 90 days.

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

AGM Group Holdings  vs.  Cricut Inc

AGM Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGM Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cricut Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cricut Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AGM Group and Cricut

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

The idea behind AGM Group Holdings and Cricut Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.