Correlation Between SOEDER SPORTFISKE and AGF Management
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE 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 SOEDER SPORTFISKE and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOEDER SPORTFISKE AB and AGF Management Limited, you can compare the effects of market volatilities on SOEDER SPORTFISKE 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 SOEDER SPORTFISKE with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and AGF Management.
Diversification Opportunities for SOEDER SPORTFISKE and AGF Management
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOEDER and AGF is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE AB 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 SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and AGF Management go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and AGF Management
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 1.09 times more return on investment than AGF Management. However, SOEDER SPORTFISKE is 1.09 times more volatile than AGF Management Limited. It trades about -0.08 of its potential returns per unit of risk. AGF Management Limited is currently generating about -0.09 per unit of risk. If you would invest 221.00 in SOEDER SPORTFISKE AB on October 12, 2024 and sell it today you would lose (4.00) from holding SOEDER SPORTFISKE AB or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. AGF Management Limited
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| AGF Management |
SOEDER SPORTFISKE and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and AGF Management
The main advantage of trading using opposite SOEDER SPORTFISKE and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE 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.| SOEDER SPORTFISKE vs. 24SEVENOFFICE GROUP AB | SOEDER SPORTFISKE vs. AGF Management Limited | SOEDER SPORTFISKE vs. Brockhaus Capital Management | SOEDER SPORTFISKE vs. MAVEN WIRELESS SWEDEN |
| AGF Management vs. Yuexiu Transport Infrastructure | AGF Management vs. TITANIUM TRANSPORTGROUP | AGF Management vs. USWE SPORTS AB | AGF Management vs. Fukuyama Transporting Co |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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