Correlation Between Agora and Rackspace Technology
Can any of the company-specific risk be diversified away by investing in both Agora and Rackspace Technology 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 Rackspace Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agora Inc and Rackspace Technology, you can compare the effects of market volatilities on Agora and Rackspace Technology 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 Rackspace Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agora and Rackspace Technology.
Diversification Opportunities for Agora and Rackspace Technology
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agora and Rackspace is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Rackspace Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rackspace Technology 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 Rackspace Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rackspace Technology has no effect on the direction of Agora i.e., Agora and Rackspace Technology go up and down completely randomly.
Pair Corralation between Agora and Rackspace Technology
Considering the 90-day investment horizon Agora Inc is expected to generate 0.69 times more return on investment than Rackspace Technology. However, Agora Inc is 1.46 times less risky than Rackspace Technology. It trades about 0.12 of its potential returns per unit of risk. Rackspace Technology is currently generating about -0.39 per unit of risk. If you would invest 349.00 in Agora Inc on November 8, 2025 and sell it today you would earn a total of 64.00 from holding Agora Inc or generate 18.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agora Inc vs. Rackspace Technology
Performance |
| Timeline |
| Agora Inc |
| Rackspace Technology |
Agora and Rackspace Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agora and Rackspace Technology
The main advantage of trading using opposite Agora and Rackspace Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agora position performs unexpectedly, Rackspace Technology 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 Rackspace Technology will offset losses from the drop in Rackspace Technology's long position.The idea behind Agora Inc and Rackspace Technology 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.| Rackspace Technology vs. Lesaka Technologies | Rackspace Technology vs. Repay Holdings Corp | Rackspace Technology vs. Veritone | Rackspace Technology vs. Gorilla Technology Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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