Correlation Between Brilliant Acquisition and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Brilliant Acquisition and AGBA Acquisition 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 Brilliant Acquisition and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brilliant Acquisition Corp and AGBA Acquisition Limited, you can compare the effects of market volatilities on Brilliant Acquisition and AGBA Acquisition 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 Brilliant Acquisition with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brilliant Acquisition and AGBA Acquisition.
Diversification Opportunities for Brilliant Acquisition and AGBA Acquisition
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brilliant and AGBA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Brilliant Acquisition Corp and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Brilliant Acquisition 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 Brilliant Acquisition Corp are associated (or correlated) with AGBA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Acquisition has no effect on the direction of Brilliant Acquisition i.e., Brilliant Acquisition and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Brilliant Acquisition and AGBA Acquisition
If you would invest 21.00 in AGBA Acquisition Limited on September 1, 2024 and sell it today you would earn a total of 0.00 from holding AGBA Acquisition Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brilliant Acquisition Corp vs. AGBA Acquisition Limited
Performance |
| Timeline |
| Brilliant Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brilliant Acquisition and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brilliant Acquisition and AGBA Acquisition
The main advantage of trading using opposite Brilliant Acquisition and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brilliant Acquisition position performs unexpectedly, AGBA Acquisition 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 AGBA Acquisition will offset losses from the drop in AGBA Acquisition's long position.The idea behind Brilliant Acquisition Corp and AGBA Acquisition Limited 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.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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