Correlation Between Corporate Travel and AGF Management
Can any of the company-specific risk be diversified away by investing in both Corporate Travel and AGF Management 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 Corporate Travel and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and AGF Management Limited, you can compare the effects of market volatilities on Corporate Travel and AGF Management 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 Corporate Travel with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and AGF Management.
Diversification Opportunities for Corporate Travel and AGF Management
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corporate and AGF is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of Corporate Travel i.e., Corporate Travel and AGF Management go up and down completely randomly.
Pair Corralation between Corporate Travel and AGF Management
Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 1.46 times more return on investment than AGF Management. However, Corporate Travel is 1.46 times more volatile than AGF Management Limited. It trades about 0.31 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.17 per unit of risk. If you would invest 700.00 in Corporate Travel Management on August 27, 2024 and sell it today you would earn a total of 145.00 from holding Corporate Travel Management or generate 20.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Travel Management vs. AGF Management Limited
Performance |
| Timeline |
| Corporate Travel Man |
| AGF Management |
Corporate Travel and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and AGF Management
The main advantage of trading using opposite Corporate Travel and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, AGF Management 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 AGF Management will offset losses from the drop in AGF Management's long position.| Corporate Travel vs. Penta Ocean Construction Co | Corporate Travel vs. Daito Trust Construction | Corporate Travel vs. Sterling Construction | Corporate Travel vs. WIMFARM SA EO |
| AGF Management vs. The Bank of | AGF Management vs. Superior Plus Corp | AGF Management vs. NMI Holdings | AGF Management vs. Origin Agritech |
Check out your portfolio center.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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