Correlation Between AGBA Acquisition and Greenhill
Can any of the company-specific risk be diversified away by investing in both AGBA Acquisition and Greenhill 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 AGBA Acquisition and Greenhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGBA Acquisition and Greenhill Co, you can compare the effects of market volatilities on AGBA Acquisition and Greenhill 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 AGBA Acquisition with a short position of Greenhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGBA Acquisition and Greenhill.
Diversification Opportunities for AGBA Acquisition and Greenhill
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGBA and Greenhill is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AGBA Acquisition and Greenhill Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenhill and AGBA 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 AGBA Acquisition are associated (or correlated) with Greenhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenhill has no effect on the direction of AGBA Acquisition i.e., AGBA Acquisition and Greenhill go up and down completely randomly.
Pair Corralation between AGBA Acquisition and Greenhill
Given the investment horizon of 90 days AGBA Acquisition is expected to generate 105.4 times more return on investment than Greenhill. However, AGBA Acquisition is 105.4 times more volatile than Greenhill Co. It trades about 0.04 of its potential returns per unit of risk. Greenhill Co is currently generating about 0.28 per unit of risk. If you would invest 660.00 in AGBA Acquisition on August 31, 2024 and sell it today you would lose (100.00) from holding AGBA Acquisition or give up 15.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.36% |
| Values | Daily Returns |
AGBA Acquisition vs. Greenhill Co
Performance |
| Timeline |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGBA Acquisition and Greenhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGBA Acquisition and Greenhill
The main advantage of trading using opposite AGBA Acquisition and Greenhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGBA Acquisition position performs unexpectedly, Greenhill 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 Greenhill will offset losses from the drop in Greenhill's long position.| AGBA Acquisition vs. Magic Empire Global | AGBA Acquisition vs. Netcapital | AGBA Acquisition vs. Mercurity Fintech Holding | AGBA Acquisition vs. Zhong Yang Financial |
| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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