Correlation Between WIMFARM SA and AGF Management
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA 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 WIMFARM SA and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and AGF Management Limited, you can compare the effects of market volatilities on WIMFARM SA 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 WIMFARM SA with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and AGF Management.
Diversification Opportunities for WIMFARM SA and AGF Management
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and AGF is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and WIMFARM SA 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 WIMFARM SA EO 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 WIMFARM SA i.e., WIMFARM SA and AGF Management go up and down completely randomly.
Pair Corralation between WIMFARM SA and AGF Management
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the AGF Management. In addition to that, WIMFARM SA is 2.39 times more volatile than AGF Management Limited. It trades about -0.13 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.11 per unit of volatility. If you would invest 693.00 in AGF Management Limited on November 6, 2024 and sell it today you would earn a total of 27.00 from holding AGF Management Limited or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
WIMFARM SA EO vs. AGF Management Limited
Performance |
| Timeline |
| WIMFARM SA EO |
| AGF Management |
WIMFARM SA and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and AGF Management
The main advantage of trading using opposite WIMFARM SA and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA 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.| WIMFARM SA vs. Pebblebrook Hotel Trust | WIMFARM SA vs. Sunstone Hotel Investors | WIMFARM SA vs. China Resources Beer | WIMFARM SA vs. HYATT HOTELS A |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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