Correlation Between AGBA Acquisition and SAITECH Global
Can any of the company-specific risk be diversified away by investing in both AGBA Acquisition and SAITECH Global 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 SAITECH Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGBA Acquisition and SAITECH Global, you can compare the effects of market volatilities on AGBA Acquisition and SAITECH Global 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 SAITECH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGBA Acquisition and SAITECH Global.
Diversification Opportunities for AGBA Acquisition and SAITECH Global
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGBA and SAITECH is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AGBA Acquisition and SAITECH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAITECH Global 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 SAITECH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAITECH Global has no effect on the direction of AGBA Acquisition i.e., AGBA Acquisition and SAITECH Global go up and down completely randomly.
Pair Corralation between AGBA Acquisition and SAITECH Global
Given the investment horizon of 90 days AGBA Acquisition is expected to generate 1.76 times more return on investment than SAITECH Global. However, AGBA Acquisition is 1.76 times more volatile than SAITECH Global. It trades about 0.04 of its potential returns per unit of risk. SAITECH Global is currently generating about 0.0 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 Together |
| Strength | Very Weak |
| Accuracy | 96.2% |
| Values | Daily Returns |
AGBA Acquisition vs. SAITECH Global
Performance |
| Timeline |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SAITECH Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGBA Acquisition and SAITECH Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGBA Acquisition and SAITECH Global
The main advantage of trading using opposite AGBA Acquisition and SAITECH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGBA Acquisition position performs unexpectedly, SAITECH Global 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 SAITECH Global will offset losses from the drop in SAITECH Global'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 |
| SAITECH Global vs. Zhong Yang Financial | SAITECH Global vs. Netcapital | SAITECH Global vs. Magic Empire Global | SAITECH Global vs. Applied Blockchain |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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