Correlation Between AGM Group and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both AGM Group and Nano Dimension 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 AGM Group and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGM Group Holdings and Nano Dimension, you can compare the effects of market volatilities on AGM Group and Nano Dimension 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 AGM Group with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and Nano Dimension.
Diversification Opportunities for AGM Group and Nano Dimension
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGM and Nano is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and AGM Group 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 AGM Group Holdings are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of AGM Group i.e., AGM Group and Nano Dimension go up and down completely randomly.
Pair Corralation between AGM Group and Nano Dimension
Given the investment horizon of 90 days AGM Group Holdings is expected to generate 1.68 times more return on investment than Nano Dimension. However, AGM Group is 1.68 times more volatile than Nano Dimension. It trades about 0.14 of its potential returns per unit of risk. Nano Dimension is currently generating about 0.08 per unit of risk. If you would invest 120.00 in AGM Group Holdings on September 11, 2024 and sell it today you would earn a total of 54.00 from holding AGM Group Holdings or generate 45.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AGM Group Holdings vs. Nano Dimension
Performance |
Timeline |
AGM Group Holdings |
Nano Dimension |
AGM Group and Nano Dimension Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AGM Group and Nano Dimension
The main advantage of trading using opposite AGM Group and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGM Group position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.AGM Group vs. TransAct Technologies Incorporated | AGM Group vs. Key Tronic | AGM Group vs. Identiv | AGM Group vs. AstroNova |
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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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