Correlation Between IONQ and AGM Group

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

Diversification Opportunities for IONQ and AGM Group

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between IONQ and AGM is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding IONQ Inc and AGM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGM Group Holdings and IONQ 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 IONQ Inc are associated (or correlated) with AGM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGM Group Holdings has no effect on the direction of IONQ i.e., IONQ and AGM Group go up and down completely randomly.

Pair Corralation between IONQ and AGM Group

Given the investment horizon of 90 days IONQ Inc is expected to generate 0.9 times more return on investment than AGM Group. However, IONQ Inc is 1.11 times less risky than AGM Group. It trades about 0.08 of its potential returns per unit of risk. AGM Group Holdings is currently generating about 0.03 per unit of risk. If you would invest  1,521  in IONQ Inc on September 6, 2024 and sell it today you would earn a total of  1,821  from holding IONQ Inc or generate 119.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.62%
ValuesDaily Returns

IONQ Inc  vs.  AGM Group Holdings

 Performance 
       Timeline  
IONQ Inc 

Risk-Adjusted Performance

27 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in IONQ Inc are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, IONQ reported solid returns over the last few months and may actually be approaching a breakup point.
AGM Group Holdings 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AGM Group Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain primary indicators, AGM Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

IONQ and AGM Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IONQ and AGM Group

The main advantage of trading using opposite IONQ and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IONQ position performs unexpectedly, AGM Group 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 AGM Group will offset losses from the drop in AGM Group's long position.
The idea behind IONQ Inc and AGM Group Holdings 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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