Correlation Between AGM Group and Super Micro

Can any of the company-specific risk be diversified away by investing in both AGM Group and Super Micro 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 Super Micro 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 Super Micro Computer, you can compare the effects of market volatilities on AGM Group and Super Micro 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 Super Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGM Group and Super Micro.

Diversification Opportunities for AGM Group and Super Micro

-0.05

Correlation Coefficient

AGM Group  Super Micro

Good diversification

The 3 months correlation between AGM and Super is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of AGM Group i.e., AGM Group and Super Micro go up and down completely randomly.

Pair Corralation between AGM Group and Super Micro

Given the investment horizon of 90 days AGM Group Holdings is expected to under-perform the Super Micro. But the stock apears to be less risky and, when comparing its historical volatility, AGM Group Holdings is 2.01 times less risky than Super Micro. The stock trades about -0.15 of its potential returns per unit of risk. The Super Micro Computer is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  3,841  in Super Micro Computer on September 24, 2024 and sell it today you would lose (601.00) from holding Super Micro Computer or give up 15.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGM Group Holdings  vs.  Super Micro Computer

AGM Group Holdings

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AGM Group Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak primary indicators, AGM Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Super Micro Computer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Super Micro Computer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with AGM Group and Super Micro

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

The idea behind AGM Group Holdings and Super Micro Computer 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..