Correlation Between Agency and Amacore

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

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

Diversification Opportunities for Agency and Amacore

0.0

Correlation Coefficient

Agency  Amacore

Pay attention - limited upside

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

Pair Corralation between Agency and Amacore

If you would invest  0.01  in The Amacore Group on January 25, 2024 and sell it today you would earn a total of  0.00  from holding The Amacore Group 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

Agency Com  vs.  The Amacore Group

Agency Com

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agency Com has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Agency is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Amacore Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Amacore Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Amacore is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Agency and Amacore

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

The idea behind Agency Com and The Amacore Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.