Correlation Between Agora and Clear Secure

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

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

Diversification Opportunities for Agora and Clear Secure

-0.57

Correlation Coefficient

Agora  Clear Secure

Excellent diversification

The 3 months correlation between Agora and Clear is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and Agora 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 Agora Inc are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Agora i.e., Agora and Clear Secure go up and down completely randomly.

Pair Corralation between Agora and Clear Secure

Considering the 90-day investment horizon Agora Inc is expected to generate 1.44 times more return on investment than Clear Secure. However, Agora is 1.44 times more volatile than Clear Secure. It trades about 0.14 of its potential returns per unit of risk. Clear Secure is currently generating about -0.11 per unit of risk. If you would invest  300.00  in Agora Inc on February 8, 2025 and sell it today you would earn a total of  37.00  from holding Agora Inc or generate 12.33% return on investment over 90 days.

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

Agora Inc  vs.  Clear Secure

Agora Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agora Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Clear Secure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Clear Secure are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Clear Secure may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Agora and Clear Secure

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

The idea behind Agora Inc and Clear Secure 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.