Correlation Between Agora and Wallbox NV

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Can any of the company-specific risk be diversified away by investing in both Agora and Wallbox NV 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 Wallbox NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agora Inc and Wallbox NV, you can compare the effects of market volatilities on Agora and Wallbox NV 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 Wallbox NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agora and Wallbox NV.

Diversification Opportunities for Agora and Wallbox NV

0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between Agora and Wallbox is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Wallbox NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallbox NV 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 Wallbox NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallbox NV has no effect on the direction of Agora i.e., Agora and Wallbox NV go up and down completely randomly.

Pair Corralation between Agora and Wallbox NV

Considering the 90-day investment horizon Agora Inc is expected to generate 0.65 times more return on investment than Wallbox NV. However, Agora Inc is 1.55 times less risky than Wallbox NV. It trades about 0.04 of its potential returns per unit of risk. Wallbox NV is currently generating about -0.04 per unit of risk. If you would invest  340.00  in Agora Inc on August 30, 2025 and sell it today you would earn a total of  14.00  from holding Agora Inc or generate 4.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Agora Inc  vs.  Wallbox NV

 Performance 
       Timeline  
Agora Inc 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
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 fragile basic indicators, Agora may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Wallbox NV 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Wallbox NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Agora and Wallbox NV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agora and Wallbox NV

The main advantage of trading using opposite Agora and Wallbox NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agora position performs unexpectedly, Wallbox NV 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 Wallbox NV will offset losses from the drop in Wallbox NV's long position.
The idea behind Agora Inc and Wallbox NV 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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