Correlation Between AGF Management and SAMS INTERNAT
Can any of the company-specific risk be diversified away by investing in both AGF Management and SAMS INTERNAT 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 AGF Management and SAMS INTERNAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGF Management Limited and SAMS INTERNAT R, you can compare the effects of market volatilities on AGF Management and SAMS INTERNAT 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 AGF Management with a short position of SAMS INTERNAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and SAMS INTERNAT.
Diversification Opportunities for AGF Management and SAMS INTERNAT
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGF and SAMS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and SAMS INTERNAT R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMS INTERNAT R and AGF Management 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 AGF Management Limited are associated (or correlated) with SAMS INTERNAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMS INTERNAT R has no effect on the direction of AGF Management i.e., AGF Management and SAMS INTERNAT go up and down completely randomly.
Pair Corralation between AGF Management and SAMS INTERNAT
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.86 times more return on investment than SAMS INTERNAT. However, AGF Management Limited is 1.16 times less risky than SAMS INTERNAT. It trades about -0.12 of its potential returns per unit of risk. SAMS INTERNAT R is currently generating about -0.41 per unit of risk. If you would invest 665.00 in AGF Management Limited on January 9, 2025 and sell it today you would lose (80.00) from holding AGF Management Limited or give up 12.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AGF Management Limited vs. SAMS INTERNAT R
Performance |
| Timeline |
| AGF Management |
| SAMS INTERNAT R |
AGF Management and SAMS INTERNAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and SAMS INTERNAT
The main advantage of trading using opposite AGF Management and SAMS INTERNAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, SAMS INTERNAT 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 SAMS INTERNAT will offset losses from the drop in SAMS INTERNAT's long position.| AGF Management vs. MeVis Medical Solutions | AGF Management vs. Science Applications International | AGF Management vs. Peijia Medical Limited | AGF Management vs. MICRONIC MYDATA |
| SAMS INTERNAT vs. Digilife Technologies Limited | SAMS INTERNAT vs. SPECTRAL MEDICAL | SAMS INTERNAT vs. Genscript Biotech | SAMS INTERNAT vs. Peijia Medical Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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