Correlation Between Ageagle Aerial and AGM Group

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

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

Diversification Opportunities for Ageagle Aerial and AGM Group

0.93

Correlation Coefficient

Ageagle Aerial  AGM Group

Almost no diversification

The 3 months correlation between Ageagle and AGM is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems 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 Ageagle Aerial 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 Ageagle Aerial Systems 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 Ageagle Aerial i.e., Ageagle Aerial and AGM Group go up and down completely randomly.

Pair Corralation between Ageagle Aerial and AGM Group

Given the investment horizon of 90 days Ageagle Aerial Systems is expected to generate 0.26 times more return on investment than AGM Group. However, Ageagle Aerial Systems is 3.82 times less risky than AGM Group. It trades about -0.33 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  420.00  in Ageagle Aerial Systems on December 28, 2024 and sell it today you would lose (286.00) from holding Ageagle Aerial Systems or give up 68.1% of portfolio value over 90 days.

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

Ageagle Aerial Systems  vs.  AGM Group Holdings

Ageagle Aerial Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ageagle Aerial Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators 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.

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.

Pair Trading with Ageagle Aerial and AGM Group

The main advantage of trading using opposite Ageagle Aerial and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial 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 Ageagle Aerial Systems 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.