Correlation Between MAVEN WIRELESS and AGF Management
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS 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 MAVEN WIRELESS and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and AGF Management Limited, you can compare the effects of market volatilities on MAVEN WIRELESS 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 MAVEN WIRELESS with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and AGF Management.
Diversification Opportunities for MAVEN WIRELESS and AGF Management
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAVEN and AGF is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and AGF Management go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and AGF Management
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the AGF Management. In addition to that, MAVEN WIRELESS is 1.02 times more volatile than AGF Management Limited. It trades about -0.19 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.2 per unit of volatility. If you would invest 675.00 in AGF Management Limited on August 31, 2024 and sell it today you would earn a total of 60.00 from holding AGF Management Limited or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. AGF Management Limited
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| AGF Management |
MAVEN WIRELESS and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and AGF Management
The main advantage of trading using opposite MAVEN WIRELESS and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS 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.| MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Superior Plus Corp | MAVEN WIRELESS vs. NMI Holdings |
| AGF Management vs. AXWAY SOFTWARE EO | AGF Management vs. Kaiser Aluminum | AGF Management vs. Jacquet Metal Service | AGF Management vs. Aluminum of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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