Correlation Between Magic Empire and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Magic Empire 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 Magic Empire and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magic Empire Global and AGBA Acquisition, you can compare the effects of market volatilities on Magic Empire 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 Magic Empire with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Empire and AGBA Acquisition.
Diversification Opportunities for Magic Empire and AGBA Acquisition
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Magic and AGBA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Magic Empire Global and AGBA Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Magic Empire 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 Magic Empire Global 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 Magic Empire i.e., Magic Empire and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Magic Empire and AGBA Acquisition
Given the investment horizon of 90 days Magic Empire Global is expected to generate 0.78 times more return on investment than AGBA Acquisition. However, Magic Empire Global is 1.28 times less risky than AGBA Acquisition. It trades about 0.0 of its potential returns per unit of risk. AGBA Acquisition is currently generating about -0.1 per unit of risk. If you would invest 60.00 in Magic Empire Global on August 29, 2024 and sell it today you would lose (8.00) from holding Magic Empire Global or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Magic Empire Global vs. AGBA Acquisition
Performance |
| Timeline |
| Magic Empire Global |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magic Empire and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Empire and AGBA Acquisition
The main advantage of trading using opposite Magic Empire and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Empire 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.| Magic Empire vs. Netcapital | Magic Empire vs. Applied Blockchain | Magic Empire vs. Zhong Yang Financial | Magic Empire vs. Mercurity Fintech Holding |
| AGBA Acquisition vs. Magic Empire Global | AGBA Acquisition vs. Netcapital | AGBA Acquisition vs. Mercurity Fintech Holding | AGBA Acquisition vs. Zhong Yang Financial |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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