Correlation Between ONWARD MEDICAL and AGF Management
Can any of the company-specific risk be diversified away by investing in both ONWARD MEDICAL 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 ONWARD MEDICAL and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONWARD MEDICAL BV and AGF Management Limited, you can compare the effects of market volatilities on ONWARD MEDICAL 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 ONWARD MEDICAL with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONWARD MEDICAL and AGF Management.
Diversification Opportunities for ONWARD MEDICAL and AGF Management
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ONWARD and AGF is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ONWARD MEDICAL BV and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and ONWARD MEDICAL 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 ONWARD MEDICAL BV 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 ONWARD MEDICAL i.e., ONWARD MEDICAL and AGF Management go up and down completely randomly.
Pair Corralation between ONWARD MEDICAL and AGF Management
Assuming the 90 days horizon ONWARD MEDICAL is expected to generate 2.04 times less return on investment than AGF Management. In addition to that, ONWARD MEDICAL is 1.77 times more volatile than AGF Management Limited. It trades about 0.03 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.13 per unit of volatility. If you would invest 534.00 in AGF Management Limited on September 27, 2024 and sell it today you would earn a total of 166.00 from holding AGF Management Limited or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONWARD MEDICAL BV vs. AGF Management Limited
Performance |
| Timeline |
| ONWARD MEDICAL BV |
| AGF Management |
ONWARD MEDICAL and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONWARD MEDICAL and AGF Management
The main advantage of trading using opposite ONWARD MEDICAL and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONWARD MEDICAL 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.| ONWARD MEDICAL vs. Novo Nordisk AS | ONWARD MEDICAL vs. Mercedes Benz Group AG | ONWARD MEDICAL vs. Moderna | ONWARD MEDICAL vs. WUXI BIOLOGICS UNSPADR2 |
| AGF Management vs. Blackstone Group | AGF Management vs. The Bank of | AGF Management vs. Ameriprise Financial | AGF Management vs. T Rowe Price |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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