Correlation Between AGM Group and D Wave

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

Diversification Opportunities for AGM Group and D Wave

0.03

Correlation Coefficient

AGM Group  D Wave

Significant diversification

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

Pair Corralation between AGM Group and D Wave

Given the investment horizon of 90 days AGM Group Holdings is expected to under-perform the D Wave. In addition to that, AGM Group is 1.6 times more volatile than D Wave Quantum. It trades about -0.14 of its total potential returns per unit of risk. D Wave Quantum is currently generating about 0.04 per unit of volatility. If you would invest  990.00  in D Wave Quantum on December 26, 2024 and sell it today you would lose (168.00) from holding D Wave Quantum or give up 16.97% of portfolio value over 90 days.

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

AGM Group Holdings  vs.  D Wave Quantum

AGM Group Holdings

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

D Wave Quantum

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in D Wave Quantum are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, D Wave unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AGM Group and D Wave

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

The idea behind AGM Group Holdings and D Wave Quantum 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.