Correlation Between EBullion and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both EBullion 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 EBullion and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBullion and AGBA Acquisition Limited, you can compare the effects of market volatilities on EBullion 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 EBullion with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBullion and AGBA Acquisition.
Diversification Opportunities for EBullion and AGBA Acquisition
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EBullion and AGBA is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding EBullion and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and EBullion 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 EBullion 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 EBullion i.e., EBullion and AGBA Acquisition go up and down completely randomly.
Pair Corralation between EBullion 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBullion vs. AGBA Acquisition Limited
Performance |
| Timeline |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EBullion and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBullion and AGBA Acquisition
The main advantage of trading using opposite EBullion and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBullion 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.| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion vs. Blockmate Ventures |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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