Correlation Between Kairous Acquisition and AGM Group
Can any of the company-specific risk be diversified away by investing in both Kairous Acquisition 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 Kairous Acquisition and AGM Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kairous Acquisition Corp and AGM Group Holdings, you can compare the effects of market volatilities on Kairous Acquisition 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 Kairous Acquisition with a short position of AGM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kairous Acquisition and AGM Group.
Diversification Opportunities for Kairous Acquisition and AGM Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kairous and AGM is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kairous Acquisition Corp 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 Kairous 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 Kairous Acquisition Corp 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 Kairous Acquisition i.e., Kairous Acquisition and AGM Group go up and down completely randomly.
Pair Corralation between Kairous Acquisition and AGM Group
Assuming the 90 days horizon Kairous Acquisition Corp is expected to generate 3.24 times more return on investment than AGM Group. However, Kairous Acquisition is 3.24 times more volatile than AGM Group Holdings. It trades about 0.07 of its potential returns per unit of risk. AGM Group Holdings is currently generating about -0.01 per unit of risk. If you would invest 7.01 in Kairous Acquisition Corp on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Kairous Acquisition Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 64.62% |
Values | Daily Returns |
Kairous Acquisition Corp vs. AGM Group Holdings
Performance |
Timeline |
Kairous Acquisition Corp |
AGM Group Holdings |
Kairous Acquisition and AGM Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kairous Acquisition and AGM Group
The main advantage of trading using opposite Kairous Acquisition and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kairous Acquisition 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.Kairous Acquisition vs. Visa Class A | Kairous Acquisition vs. Diamond Hill Investment | Kairous Acquisition vs. Distoken Acquisition | Kairous Acquisition vs. AllianceBernstein Holding LP |
AGM Group vs. Kairous Acquisition Corp | AGM Group vs. Aquagold International | AGM Group vs. Morningstar Unconstrained Allocation | AGM Group vs. Thrivent High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |