Correlation Between C3 Ai and Agora

Can any of the company-specific risk be diversified away by investing in both C3 Ai and Agora 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 C3 Ai and Agora into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Ai Inc and Agora Inc, you can compare the effects of market volatilities on C3 Ai and Agora 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 C3 Ai with a short position of Agora. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Ai and Agora.

Diversification Opportunities for C3 Ai and Agora

0.86

Correlation Coefficient

C3 Ai  Agora

Very poor diversification

The 3 months correlation between C3 Ai and Agora is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding C3 Ai Inc and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and C3 Ai 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 C3 Ai Inc are associated (or correlated) with Agora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agora Inc has no effect on the direction of C3 Ai i.e., C3 Ai and Agora go up and down completely randomly.

Pair Corralation between C3 Ai and Agora

Allowing for the 90-day total investment horizon C3 Ai is expected to generate 1.01 times less return on investment than Agora. In addition to that, C3 Ai is 1.16 times more volatile than Agora Inc. It trades about 0.13 of its total potential returns per unit of risk. Agora Inc is currently generating about 0.15 per unit of volatility. If you would invest  314.00  in Agora Inc on April 24, 2025 and sell it today you would earn a total of  99.50  from holding Agora Inc or generate 31.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

C3 Ai Inc  vs.  Agora Inc

C3 Ai Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in C3 Ai Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, C3 Ai demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Agora Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agora Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Agora demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with C3 Ai and Agora

The main advantage of trading using opposite C3 Ai and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Ai position performs unexpectedly, Agora 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 Agora will offset losses from the drop in Agora's long position.

The idea behind C3 Ai Inc and Agora Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.