Correlation Between AGM Group and Cricut
Can any of the company-specific risk be diversified away by investing in both AGM Group and Cricut 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 AGM Group and Cricut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGM Group Holdings and Cricut Inc, you can compare the effects of market volatilities on AGM Group and Cricut 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 AGM Group with a short position of Cricut. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and Cricut.
Diversification Opportunities for AGM Group and Cricut
Average diversification
The 3 months correlation between AGM and Cricut is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Cricut Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cricut Inc and AGM Group 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 AGM Group Holdings are associated (or correlated) with Cricut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cricut Inc has no effect on the direction of AGM Group i.e., AGM Group and Cricut go up and down completely randomly.
Pair Corralation between AGM Group and Cricut
Given the investment horizon of 90 days AGM Group Holdings is expected to generate 1.35 times more return on investment than Cricut. However, AGM Group is 1.35 times more volatile than Cricut Inc. It trades about 0.02 of its potential returns per unit of risk. Cricut Inc is currently generating about -0.01 per unit of risk. If you would invest 222.00 in AGM Group Holdings on August 31, 2024 and sell it today you would lose (47.00) from holding AGM Group Holdings or give up 21.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
AGM Group Holdings vs. Cricut Inc
Performance |
| Timeline |
| AGM Group Holdings |
| Cricut Inc |
AGM Group and Cricut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGM Group and Cricut
The main advantage of trading using opposite AGM Group and Cricut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGM Group position performs unexpectedly, Cricut 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 Cricut will offset losses from the drop in Cricut's long position.| AGM Group vs. TransAct Technologies Incorporated | AGM Group vs. Key Tronic | AGM Group vs. Identiv | AGM Group vs. AstroNova |
| Cricut vs. Nano Dimension | Cricut vs. 3D Systems | Cricut vs. Markforged Holding Corp | Cricut vs. Stratasys |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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