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
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AGF and SAMS is 0.08. 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 1.05 times more return on investment than SAMS INTERNAT. However, AGF Management is 1.05 times more volatile than SAMS INTERNAT R. It trades about 0.05 of its potential returns per unit of risk. SAMS INTERNAT R is currently generating about 0.0 per unit of risk. If you would invest 730.00 in AGF Management Limited on November 27, 2024 and sell it today you would earn a total of 15.00 from holding AGF Management Limited or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| 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. Stag Industrial | AGF Management vs. X FAB Silicon Foundries | AGF Management vs. Kingdee International Software | AGF Management vs. Check Point Software |
| SAMS INTERNAT vs. Fortescue Metals Group | SAMS INTERNAT vs. East Africa Metals | SAMS INTERNAT vs. Transport International Holdings | SAMS INTERNAT vs. Yuexiu Transport Infrastructure |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |