Correlation Between AGM Group and STRC Old
Can any of the company-specific risk be diversified away by investing in both AGM Group and STRC Old 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 STRC Old 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 STRC Old, you can compare the effects of market volatilities on AGM Group and STRC Old 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 STRC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and STRC Old.
Diversification Opportunities for AGM Group and STRC Old
Very poor diversification
The 3 months correlation between AGM and STRC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and STRC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRC Old 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 STRC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRC Old has no effect on the direction of AGM Group i.e., AGM Group and STRC Old go up and down completely randomly.
Pair Corralation between AGM Group and STRC Old
Given the investment horizon of 90 days AGM Group Holdings is expected to generate 0.82 times more return on investment than STRC Old. However, AGM Group Holdings is 1.21 times less risky than STRC Old. It trades about 0.02 of its potential returns per unit of risk. STRC Old is currently generating about -0.08 per unit of risk. If you would invest 163.00 in AGM Group Holdings on October 20, 2024 and sell it today you would lose (35.00) from holding AGM Group Holdings or give up 21.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 24.95% |
| Values | Daily Returns |
AGM Group Holdings vs. STRC Old
Performance |
| Timeline |
| AGM Group Holdings |
| STRC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGM Group and STRC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGM Group and STRC Old
The main advantage of trading using opposite AGM Group and STRC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGM Group position performs unexpectedly, STRC Old 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 STRC Old will offset losses from the drop in STRC Old'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |