Correlation Between Quantum and AGM Group

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

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

Diversification Opportunities for Quantum and AGM Group

-0.61

Correlation Coefficient

Quantum  AGM Group

Excellent diversification

The 3 months correlation between Quantum and AGM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Quantum and AGM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGM Group Holdings and Quantum 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 Quantum are associated (or correlated) with AGM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGM Group Holdings has no effect on the direction of Quantum i.e., Quantum and AGM Group go up and down completely randomly.

Pair Corralation between Quantum and AGM Group

Given the investment horizon of 90 days Quantum is expected to generate 3.51 times more return on investment than AGM Group. However, Quantum is 3.51 times more volatile than AGM Group Holdings. It trades about 0.15 of its potential returns per unit of risk. AGM Group Holdings is currently generating about 0.13 per unit of risk. If you would invest  780.00  in Quantum on September 29, 2024 and sell it today you would earn a total of  6,287  from holding Quantum or generate 806.03% return on investment over 90 days.

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

Quantum  vs.  AGM Group Holdings

Quantum

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Quantum displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Quantum and AGM Group

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

The idea behind Quantum and AGM Group Holdings 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.