Correlation Between Aether Holdings, and Agora

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

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

Diversification Opportunities for Aether Holdings, and Agora

-0.5

Correlation Coefficient

Aether Holdings,  Agora

Very good diversification

The 3 months correlation between Aether and Agora is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aether Holdings, and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and Aether Holdings, 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 Aether Holdings, 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 Aether Holdings, i.e., Aether Holdings, and Agora go up and down completely randomly.

Pair Corralation between Aether Holdings, and Agora

Given the investment horizon of 90 days Aether Holdings, is expected to generate 1.4 times more return on investment than Agora. However, Aether Holdings, is 1.4 times more volatile than Agora Inc. It trades about 0.11 of its potential returns per unit of risk. Agora Inc is currently generating about 0.03 per unit of risk. If you would invest  512.00  in Aether Holdings, on September 14, 2025 and sell it today you would earn a total of  136.00  from holding Aether Holdings, or generate 26.56% return on investment over 90 days.

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

Aether Holdings,  vs.  Agora Inc

Aether Holdings,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Aether Holdings, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent technical indicators, Aether Holdings, reported solid returns over the last few months and may actually be approaching a breakup point.

Agora Inc

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Agora Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Agora is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Aether Holdings, and Agora

The main advantage of trading using opposite Aether Holdings, and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aether Holdings, 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 Aether Holdings, 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.