Correlation Between Southern Trust and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Southern Trust 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 Southern Trust and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Trust Securities and AGBA Acquisition Limited, you can compare the effects of market volatilities on Southern Trust 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 Southern Trust with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Trust and AGBA Acquisition.
Diversification Opportunities for Southern Trust and AGBA Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Southern and AGBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Trust Securities and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Southern Trust 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 Southern Trust Securities 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 Southern Trust i.e., Southern Trust and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Southern Trust and AGBA Acquisition
Given the investment horizon of 90 days Southern Trust Securities is expected to under-perform the AGBA Acquisition. But the pink sheet apears to be less risky and, when comparing its historical volatility, Southern Trust Securities is 10.11 times less risky than AGBA Acquisition. The pink sheet trades about -0.06 of its potential returns per unit of risk. The 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 | Flat |
| Strength | Insignificant |
| Accuracy | 72.38% |
| Values | Daily Returns |
Southern Trust Securities vs. AGBA Acquisition Limited
Performance |
| Timeline |
| Southern Trust Securities |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Southern Trust and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Trust and AGBA Acquisition
The main advantage of trading using opposite Southern Trust and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Trust 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.| Southern Trust vs. Dennys Corp | Southern Trust vs. CAVA Group, | Southern Trust vs. Peoples Educational Holdings | Southern Trust vs. Cannae Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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