Correlation Between Edoc Acquisition and AGBA Old
Can any of the company-specific risk be diversified away by investing in both Edoc Acquisition 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 Edoc Acquisition and AGBA Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edoc Acquisition Corp and AGBA Old, you can compare the effects of market volatilities on Edoc Acquisition 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 Edoc Acquisition with a short position of AGBA Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edoc Acquisition and AGBA Old.
Diversification Opportunities for Edoc Acquisition and AGBA Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edoc and AGBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edoc Acquisition Corp and AGBA Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Old and Edoc Acquisition 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 Edoc Acquisition Corp 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 Edoc Acquisition i.e., Edoc Acquisition and AGBA Old go up and down completely randomly.
Pair Corralation between Edoc Acquisition and AGBA Old
If you would invest (100.00) in AGBA Old on November 18, 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 | 100.0% |
| Values | Daily Returns |
Edoc Acquisition Corp vs. AGBA Old
Performance |
| Timeline |
| Edoc Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AGBA Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Edoc Acquisition and AGBA Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edoc Acquisition and AGBA Old
The main advantage of trading using opposite Edoc Acquisition and AGBA Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edoc Acquisition 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 Edoc Acquisition Corp 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.| AGBA Old vs. Magic Empire Global | AGBA Old vs. Netcapital | AGBA Old vs. Mercurity Fintech Holding | AGBA Old vs. Zhong Yang Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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