Correlation Between EPWK Holdings and Agora

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

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

Diversification Opportunities for EPWK Holdings and Agora

-0.5

Correlation Coefficient

EPWK Holdings  Agora

Very good diversification

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

Pair Corralation between EPWK Holdings and Agora

Given the investment horizon of 90 days EPWK Holdings Ltd is expected to under-perform the Agora. In addition to that, EPWK Holdings is 5.53 times more volatile than Agora Inc. It trades about -0.1 of its total potential returns per unit of risk. Agora Inc is currently generating about 0.13 per unit of volatility. If you would invest  320.00  in Agora Inc on April 25, 2025 and sell it today you would earn a total of  80.00  from holding Agora Inc or generate 25.0% return on investment over 90 days.

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

EPWK Holdings Ltd  vs.  Agora Inc

EPWK Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days EPWK Holdings Ltd 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 basic indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Agora Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agora Inc are ranked lower than 10 (%) 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 EPWK Holdings and Agora

The main advantage of trading using opposite EPWK Holdings and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPWK 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 EPWK Holdings Ltd 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.