Correlation Between AGVC and KEY

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

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

Diversification Opportunities for AGVC and KEY

-0.13

Correlation Coefficient

AGVC  KEY

Good diversification

The 3 months correlation between AGVC and KEY is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding AGVC and KEY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY and AGVC 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 AGVC are associated (or correlated) with KEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY has no effect on the direction of AGVC i.e., AGVC and KEY go up and down completely randomly.

Pair Corralation between AGVC and KEY

If you would invest  0.23  in AGVC on September 1, 2024 and sell it today you would earn a total of  0.00  from holding AGVC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

AGVC  vs.  KEY

AGVC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGVC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, AGVC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

KEY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for KEY shareholders.

Pair Trading with AGVC and KEY

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

The idea behind AGVC and KEY 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.