Correlation Between Agora and Intellinetics
Can any of the company-specific risk be diversified away by investing in both Agora and Intellinetics 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 Agora and Intellinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agora Inc and Intellinetics, you can compare the effects of market volatilities on Agora and Intellinetics 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 Agora with a short position of Intellinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agora and Intellinetics.
Diversification Opportunities for Agora and Intellinetics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agora and Intellinetics is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Intellinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellinetics and Agora 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 Agora Inc are associated (or correlated) with Intellinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellinetics has no effect on the direction of Agora i.e., Agora and Intellinetics go up and down completely randomly.
Pair Corralation between Agora and Intellinetics
Considering the 90-day investment horizon Agora Inc is expected to generate 2.97 times more return on investment than Intellinetics. However, Agora is 2.97 times more volatile than Intellinetics. It trades about 0.21 of its potential returns per unit of risk. Intellinetics is currently generating about 0.14 per unit of risk. If you would invest 298.00 in Agora Inc on August 27, 2024 and sell it today you would earn a total of 151.00 from holding Agora Inc or generate 50.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agora Inc vs. Intellinetics
Performance |
| Timeline |
| Agora Inc |
| Intellinetics |
Agora and Intellinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agora and Intellinetics
The main advantage of trading using opposite Agora and Intellinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agora position performs unexpectedly, Intellinetics 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 Intellinetics will offset losses from the drop in Intellinetics' long position.The idea behind Agora Inc and Intellinetics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Intellinetics vs. Alkami Technology | Intellinetics vs. ADEIA P | Intellinetics vs. Paycor HCM | Intellinetics vs. Envestnet |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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