Correlation Between Schultze Special and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Schultze Special 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 Schultze Special and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schultze Special Purpose and AGBA Acquisition Limited, you can compare the effects of market volatilities on Schultze Special 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 Schultze Special with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schultze Special and AGBA Acquisition.
Diversification Opportunities for Schultze Special and AGBA Acquisition
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schultze and AGBA is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Schultze Special Purpose and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Schultze Special 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 Schultze Special Purpose 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 Schultze Special i.e., Schultze Special and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Schultze Special and AGBA Acquisition
Assuming the 90 days horizon Schultze Special is expected to generate 196.68 times less return on investment than AGBA Acquisition. But when comparing it to its historical volatility, Schultze Special Purpose is 165.99 times less risky than AGBA Acquisition. It trades about 0.09 of its potential returns per unit of risk. AGBA Acquisition Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9.45 in AGBA Acquisition Limited on August 29, 2024 and sell it today you would earn a total of 11.55 from holding AGBA Acquisition Limited or generate 122.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.44% |
| Values | Daily Returns |
Schultze Special Purpose vs. AGBA Acquisition Limited
Performance |
| Timeline |
| Schultze Special Purpose |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Schultze Special and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schultze Special and AGBA Acquisition
The main advantage of trading using opposite Schultze Special and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schultze Special 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.| Schultze Special vs. Healthcare AI Acquisition | Schultze Special vs. Metal Sky Star | Schultze Special vs. Chain Bridge I | Schultze Special vs. Mars 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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