Correlation Between AGM Group and Quantum
Can any of the company-specific risk be diversified away by investing in both AGM Group and Quantum 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 Quantum 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 Quantum, you can compare the effects of market volatilities on AGM Group and Quantum 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 Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and Quantum.
Diversification Opportunities for AGM Group and Quantum
Modest diversification
The 3 months correlation between AGM and Quantum is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of AGM Group i.e., AGM Group and Quantum go up and down completely randomly.
Pair Corralation between AGM Group and Quantum
Given the investment horizon of 90 days AGM Group Holdings is expected to generate 0.32 times more return on investment than Quantum. However, AGM Group Holdings is 3.14 times less risky than Quantum. It trades about -0.05 of its potential returns per unit of risk. Quantum is currently generating about -0.02 per unit of risk. If you would invest 180.00 in AGM Group Holdings on August 24, 2024 and sell it today you would lose (10.00) from holding AGM Group Holdings or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGM Group Holdings vs. Quantum
Performance |
| Timeline |
| AGM Group Holdings |
| Quantum |
AGM Group and Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGM Group and Quantum
The main advantage of trading using opposite AGM Group and Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGM Group position performs unexpectedly, Quantum 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 Quantum will offset losses from the drop in Quantum's long position.| AGM Group vs. TransAct Technologies Incorporated | AGM Group vs. Key Tronic | AGM Group vs. Identiv | AGM Group vs. AstroNova |
| Quantum vs. Rigetti Computing | Quantum vs. D Wave Quantum | Quantum vs. IONQ Inc | Quantum vs. Desktop Metal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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