Correlation Between TechCreate and Agora

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Can any of the company-specific risk be diversified away by investing in both TechCreate and Agora 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 TechCreate and Agora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechCreate Group and Agora Inc, you can compare the effects of market volatilities on TechCreate and Agora 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 TechCreate with a short position of Agora. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechCreate and Agora.

Diversification Opportunities for TechCreate and Agora

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between TechCreate and Agora is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding TechCreate Group and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and TechCreate 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 TechCreate Group are associated (or correlated) with Agora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agora Inc has no effect on the direction of TechCreate i.e., TechCreate and Agora go up and down completely randomly.

Pair Corralation between TechCreate and Agora

Given the investment horizon of 90 days TechCreate Group is expected to under-perform the Agora. In addition to that, TechCreate is 1.57 times more volatile than Agora Inc. It trades about -0.09 of its total potential returns per unit of risk. Agora Inc is currently generating about 0.21 per unit of volatility. If you would invest  367.00  in Agora Inc on September 30, 2025 and sell it today you would earn a total of  26.00  from holding Agora Inc or generate 7.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

TechCreate Group  vs.  Agora Inc

 Performance 
       Timeline  
TechCreate Group 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TechCreate Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, TechCreate disclosed solid returns over the last few months and may actually be approaching a breakup point.
Agora Inc 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Agora Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Agora is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

TechCreate and Agora Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TechCreate and Agora

The main advantage of trading using opposite TechCreate and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechCreate position performs unexpectedly, Agora 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 Agora will offset losses from the drop in Agora's long position.
The idea behind TechCreate Group and Agora Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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