Correlation Between AGM Group and D Wave
Can any of the company-specific risk be diversified away by investing in both AGM Group and D Wave 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 D Wave 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 D Wave Quantum, you can compare the effects of market volatilities on AGM Group and D Wave 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 D Wave. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and D Wave.
Diversification Opportunities for AGM Group and D Wave
Modest diversification
The 3 months correlation between AGM and QBTS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and D Wave Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on D Wave Quantum 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 D Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of D Wave Quantum has no effect on the direction of AGM Group i.e., AGM Group and D Wave go up and down completely randomly.
Pair Corralation between AGM Group and D Wave
Given the investment horizon of 90 days AGM Group is expected to generate 101.26 times less return on investment than D Wave. But when comparing it to its historical volatility, AGM Group Holdings is 3.52 times less risky than D Wave. It trades about 0.01 of its potential returns per unit of risk. D Wave Quantum is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 113.00 in D Wave Quantum on August 31, 2024 and sell it today you would earn a total of 161.00 from holding D Wave Quantum or generate 142.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGM Group Holdings vs. D Wave Quantum
Performance |
| Timeline |
| AGM Group Holdings |
| D Wave Quantum |
AGM Group and D Wave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGM Group and D Wave
The main advantage of trading using opposite AGM Group and D Wave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGM Group position performs unexpectedly, D Wave 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 D Wave will offset losses from the drop in D Wave's long position.| AGM Group vs. TransAct Technologies Incorporated | AGM Group vs. Key Tronic | AGM Group vs. Identiv | AGM Group vs. AstroNova |
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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