Correlation Between Landcadia Holdings and AGBA Acquisition

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

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

Diversification Opportunities for Landcadia Holdings and AGBA Acquisition

0.0

Correlation Coefficient

Landcadia Holdings  AGBA Acquisition

Pay attention - limited upside

The 3 months correlation between Landcadia and AGBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Landcadia Holdings IV and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Landcadia Holdings 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 Landcadia Holdings IV are associated (or correlated) with AGBA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Acquisition has no effect on the direction of Landcadia Holdings i.e., Landcadia Holdings and AGBA Acquisition go up and down completely randomly.

Pair Corralation between Landcadia Holdings and AGBA Acquisition

If you would invest  21.00  in AGBA Acquisition Limited on September 16, 2024 and sell it today you would earn a total of  0.00  from holding AGBA Acquisition Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Landcadia Holdings IV  vs.  AGBA Acquisition Limited

Landcadia Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Landcadia Holdings IV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical indicators, Landcadia Holdings is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

AGBA Acquisition

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days AGBA Acquisition Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, AGBA Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Landcadia Holdings and AGBA Acquisition

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

The idea behind Landcadia Holdings IV and AGBA Acquisition Limited 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.