Correlation Between AGM Group and Corsair Gaming

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

Diversification Opportunities for AGM Group and Corsair Gaming

0.03

Correlation Coefficient

AGM Group  Corsair Gaming

Significant diversification

The 3 months correlation between AGM and Corsair is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of AGM Group i.e., AGM Group and Corsair Gaming go up and down completely randomly.

Pair Corralation between AGM Group and Corsair Gaming

Given the investment horizon of 90 days AGM Group Holdings is expected to under-perform the Corsair Gaming. In addition to that, AGM Group is 1.08 times more volatile than Corsair Gaming. It trades about -0.22 of its total potential returns per unit of risk. Corsair Gaming is currently generating about -0.21 per unit of volatility. If you would invest  764.00  in Corsair Gaming on September 25, 2024 and sell it today you would lose (123.00) from holding Corsair Gaming or give up 16.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

AGM Group Holdings  vs.  Corsair Gaming

AGM Group Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AGM Group Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent primary indicators, AGM Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Corsair Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Corsair Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Corsair Gaming is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with AGM Group and Corsair Gaming

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

The idea behind AGM Group Holdings and Corsair Gaming 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.