Correlation Between Netcapital and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Netcapital 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 Netcapital and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netcapital and AGBA Acquisition, you can compare the effects of market volatilities on Netcapital 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 Netcapital with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcapital and AGBA Acquisition.
Diversification Opportunities for Netcapital and AGBA Acquisition
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Netcapital and AGBA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Netcapital and AGBA Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Netcapital 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 Netcapital 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 Netcapital i.e., Netcapital and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Netcapital and AGBA Acquisition
Given the investment horizon of 90 days Netcapital is expected to under-perform the AGBA Acquisition. In addition to that, Netcapital is 1.18 times more volatile than AGBA Acquisition. It trades about -0.12 of its total potential returns per unit of risk. AGBA Acquisition is currently generating about -0.1 per unit of volatility. If you would invest 1,304 in AGBA Acquisition on August 29, 2024 and sell it today you would lose (744.00) from holding AGBA Acquisition or give up 57.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Netcapital vs. AGBA Acquisition
Performance |
| Timeline |
| Netcapital |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netcapital and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcapital and AGBA Acquisition
The main advantage of trading using opposite Netcapital and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcapital 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.| Netcapital vs. Applied Blockchain | Netcapital vs. Zhong Yang Financial | Netcapital vs. Magic Empire Global | Netcapital vs. Lazard |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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