Correlation Between Top Frontier and Agape ATP

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

By analyzing existing cross correlation between Top Frontier Investment and Agape ATP, you can compare the effects of market volatilities on Top Frontier and Agape ATP 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 Top Frontier with a short position of Agape ATP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Top Frontier and Agape ATP.

Diversification Opportunities for Top Frontier and Agape ATP

0.0

Correlation Coefficient

Top Frontier  Agape ATP

Pay attention - limited upside

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

Pair Corralation between Top Frontier and Agape ATP

If you would invest  181.00  in Top Frontier Investment on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Top Frontier Investment or generate 0.0% return on investment over 90 days.

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

Top Frontier Investment  vs.  Agape ATP

Top Frontier Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Top Frontier Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Top Frontier is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Agape ATP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agape ATP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Top Frontier and Agape ATP

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

The idea behind Top Frontier Investment and Agape ATP 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.