Correlation Between AGM Group and Rimini Street

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

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

Diversification Opportunities for AGM Group and Rimini Street

0.65

Correlation Coefficient

AGM Group  Rimini Street

Poor diversification

The 3 months correlation between AGM and Rimini is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AGM Group Holdings and Rimini Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimini Street and AGM Group 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 AGM Group Holdings are associated (or correlated) with Rimini Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimini Street has no effect on the direction of AGM Group i.e., AGM Group and Rimini Street go up and down completely randomly.

Pair Corralation between AGM Group and Rimini Street

Given the investment horizon of 90 days AGM Group Holdings is expected to under-perform the Rimini Street. In addition to that, AGM Group is 1.76 times more volatile than Rimini Street. It trades about -0.36 of its total potential returns per unit of risk. Rimini Street is currently generating about -0.25 per unit of volatility. If you would invest  307.00  in Rimini Street on February 4, 2024 and sell it today you would lose (46.00) from holding Rimini Street or give up 14.98% of portfolio value over 90 days.

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

AGM Group Holdings  vs.  Rimini Street

AGM Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGM Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Rimini Street

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rimini Street has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with AGM Group and Rimini Street

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

The idea behind AGM Group Holdings and Rimini Street 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.