Correlation Between AGM Group and Quantum Computing

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

Diversification Opportunities for AGM Group and Quantum Computing

0.72

Correlation Coefficient

AGM Group  Quantum Computing

Poor diversification

The 3 months correlation between AGM and Quantum is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Quantum Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Computing 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 Quantum Computing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Computing has no effect on the direction of AGM Group i.e., AGM Group and Quantum Computing go up and down completely randomly.

Pair Corralation between AGM Group and Quantum Computing

Given the investment horizon of 90 days AGM Group Holdings is expected to under-perform the Quantum Computing. In addition to that, AGM Group is 1.59 times more volatile than Quantum Computing. It trades about -0.13 of its total potential returns per unit of risk. Quantum Computing is currently generating about -0.05 per unit of volatility. If you would invest  1,854  in Quantum Computing on December 28, 2024 and sell it today you would lose (1,060) from holding Quantum Computing or give up 57.17% of portfolio value over 90 days.

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

AGM Group Holdings  vs.  Quantum Computing

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.

Quantum Computing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantum Computing 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 drivers remain comparatively stable which may send shares a bit higher in April 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 Quantum Computing

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

The idea behind AGM Group Holdings and Quantum Computing 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.