Correlation Between Zhong Yang and AGBA Old

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

By analyzing existing cross correlation between Zhong Yang Financial and AGBA Old, you can compare the effects of market volatilities on Zhong Yang and AGBA Old 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 Zhong Yang with a short position of AGBA Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhong Yang and AGBA Old.

Diversification Opportunities for Zhong Yang and AGBA Old

0.0

Correlation Coefficient

Zhong Yang  AGBA Old

Pay attention - limited upside

The 3 months correlation between Zhong and AGBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhong Yang Financial and AGBA Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Old and Zhong Yang 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 Zhong Yang Financial are associated (or correlated) with AGBA Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Old has no effect on the direction of Zhong Yang i.e., Zhong Yang and AGBA Old go up and down completely randomly.

Pair Corralation between Zhong Yang and AGBA Old

If you would invest (100.00) in AGBA Old on December 27, 2024 and sell it today you would earn a total of  100.00  from holding AGBA Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zhong Yang Financial  vs.  AGBA Old

Zhong Yang Financial

Risk-Adjusted Performance

Very Weak

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

AGBA Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGBA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, AGBA Old is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Zhong Yang and AGBA Old

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

The idea behind Zhong Yang Financial and AGBA Old 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..