Correlation Between Where Food and Agora

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

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

Diversification Opportunities for Where Food and Agora

0.47

Correlation Coefficient

Where Food  Agora

Very weak diversification

The 3 months correlation between Where and Agora is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and Where Food 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 Where Food Comes 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 Where Food i.e., Where Food and Agora go up and down completely randomly.

Pair Corralation between Where Food and Agora

Given the investment horizon of 90 days Where Food Comes is expected to generate 0.86 times more return on investment than Agora. However, Where Food Comes is 1.17 times less risky than Agora. It trades about 0.08 of its potential returns per unit of risk. Agora Inc is currently generating about 0.03 per unit of risk. If you would invest  1,000.00  in Where Food Comes on May 19, 2025 and sell it today you would earn a total of  125.00  from holding Where Food Comes or generate 12.5% return on investment over 90 days.

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

Where Food Comes  vs.  Agora Inc

Where Food Comes

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Where Food reported solid returns over the last few months and may actually be approaching a breakup point.

Agora Inc

Risk-Adjusted Performance

Weak

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 latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Where Food and Agora

The main advantage of trading using opposite Where Food and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food 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 Where Food Comes 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.