Correlation Between LF Capital and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both LF Capital 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 LF Capital and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LF Capital Acquisition and AGBA Acquisition Limited, you can compare the effects of market volatilities on LF Capital 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 LF Capital with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LF Capital and AGBA Acquisition.
Diversification Opportunities for LF Capital and AGBA Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LFAC and AGBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LF Capital Acquisition and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and LF Capital 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 LF Capital Acquisition 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 LF Capital i.e., LF Capital and AGBA Acquisition go up and down completely randomly.
Pair Corralation between LF Capital and AGBA Acquisition
If you would invest (100.00) in LF Capital Acquisition on August 29, 2024 and sell it today you would earn a total of 100.00 from holding LF Capital Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LF Capital Acquisition vs. AGBA Acquisition Limited
Performance |
| Timeline |
| LF Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LF Capital and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LF Capital and AGBA Acquisition
The main advantage of trading using opposite LF Capital and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LF Capital 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.| LF Capital vs. Swiftmerge Acquisition Corp | LF Capital vs. Latamgrowth SPAC Unit | LF Capital vs. TLGY Acquisition Corp | LF Capital vs. Qomolangma Acquisition Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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