Correlation Between AGBA Acquisition and Landcadia Holdings

Can any of the company-specific risk be diversified away by investing in both AGBA Acquisition and Landcadia Holdings 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 AGBA Acquisition and Landcadia Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGBA Acquisition Limited and Landcadia Holdings IV, you can compare the effects of market volatilities on AGBA Acquisition and Landcadia Holdings 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 AGBA Acquisition with a short position of Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGBA Acquisition and Landcadia Holdings.

Diversification Opportunities for AGBA Acquisition and Landcadia Holdings

0.0

Correlation Coefficient

AGBA Acquisition  Landcadia Holdings

Pay attention - limited upside

The 3 months correlation between AGBA and Landcadia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGBA Acquisition Limited and Landcadia Holdings IV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings and AGBA Acquisition 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 AGBA Acquisition Limited are associated (or correlated) with Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of AGBA Acquisition i.e., AGBA Acquisition and Landcadia Holdings go up and down completely randomly.

Pair Corralation between AGBA Acquisition and Landcadia Holdings

If you would invest (100.00) in Landcadia Holdings IV on September 16, 2024 and sell it today you would earn a total of  100.00  from holding Landcadia Holdings IV or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AGBA Acquisition Limited  vs.  Landcadia Holdings IV

AGBA Acquisition

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days AGBA Acquisition Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, AGBA Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Landcadia Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Landcadia Holdings IV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical indicators, Landcadia Holdings is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AGBA Acquisition and Landcadia Holdings

The main advantage of trading using opposite AGBA Acquisition and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGBA Acquisition position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' long position.

The idea behind AGBA Acquisition Limited and Landcadia Holdings IV 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.