Correlation Between Canon and AGM Group
Can any of the company-specific risk be diversified away by investing in both Canon and AGM Group 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 Canon and AGM Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canon Inc and AGM Group Holdings, you can compare the effects of market volatilities on Canon and AGM Group 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 Canon with a short position of AGM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon and AGM Group.
Diversification Opportunities for Canon and AGM Group
Good diversification
The 3 months correlation between Canon and AGM is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Canon Inc and AGM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGM Group Holdings and Canon 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 Canon Inc are associated (or correlated) with AGM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGM Group Holdings has no effect on the direction of Canon i.e., Canon and AGM Group go up and down completely randomly.
Pair Corralation between Canon and AGM Group
Assuming the 90 days horizon Canon Inc is expected to under-perform the AGM Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Canon Inc is 1.85 times less risky than AGM Group. The pink sheet trades about -0.03 of its potential returns per unit of risk. The AGM Group Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 173.00 in AGM Group Holdings on August 30, 2024 and sell it today you would earn a total of 2.00 from holding AGM Group Holdings or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canon Inc vs. AGM Group Holdings
Performance |
| Timeline |
| Canon Inc |
| AGM Group Holdings |
Canon and AGM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon and AGM Group
The main advantage of trading using opposite Canon and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon position performs unexpectedly, AGM Group 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 AGM Group will offset losses from the drop in AGM Group's long position.The idea behind Canon Inc and AGM Group Holdings 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.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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