Correlation Between Nano Dimension and AGM Group

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

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

Diversification Opportunities for Nano Dimension and AGM Group

0.31

Correlation Coefficient

Nano Dimension  AGM Group

Weak diversification

The 3 months correlation between Nano and AGM is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension 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 Nano Dimension 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 Nano Dimension 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 Nano Dimension i.e., Nano Dimension and AGM Group go up and down completely randomly.

Pair Corralation between Nano Dimension and AGM Group

Given the investment horizon of 90 days Nano Dimension is expected to generate 0.63 times more return on investment than AGM Group. However, Nano Dimension is 1.58 times less risky than AGM Group. It trades about 0.01 of its potential returns per unit of risk. AGM Group Holdings is currently generating about -0.11 per unit of risk. If you would invest  218.00  in Nano Dimension on September 7, 2024 and sell it today you would lose (1.00) from holding Nano Dimension or give up 0.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nano Dimension  vs.  AGM Group Holdings

Nano Dimension

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Dimension are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Nano Dimension is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

AGM Group Holdings

Risk-Adjusted Performance

8 of 100

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.

Pair Trading with Nano Dimension and AGM Group

The main advantage of trading using opposite Nano Dimension and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension 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 Nano Dimension 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.