Correlation Between AGF Management and Ryohin Keikaku
Can any of the company-specific risk be diversified away by investing in both AGF Management and Ryohin Keikaku 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 Ryohin Keikaku 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 Ryohin Keikaku Co, you can compare the effects of market volatilities on AGF Management and Ryohin Keikaku 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 Ryohin Keikaku. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Ryohin Keikaku.
Diversification Opportunities for AGF Management and Ryohin Keikaku
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGF and Ryohin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Ryohin Keikaku Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryohin Keikaku 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 Ryohin Keikaku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryohin Keikaku has no effect on the direction of AGF Management i.e., AGF Management and Ryohin Keikaku go up and down completely randomly.
Pair Corralation between AGF Management and Ryohin Keikaku
Assuming the 90 days horizon AGF Management is expected to generate 3.41 times less return on investment than Ryohin Keikaku. But when comparing it to its historical volatility, AGF Management Limited is 1.46 times less risky than Ryohin Keikaku. It trades about 0.15 of its potential returns per unit of risk. Ryohin Keikaku Co is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,120 in Ryohin Keikaku Co on November 7, 2024 and sell it today you would earn a total of 400.00 from holding Ryohin Keikaku Co or generate 18.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AGF Management Limited vs. Ryohin Keikaku Co
Performance |
| Timeline |
| AGF Management |
| Ryohin Keikaku |
AGF Management and Ryohin Keikaku Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Ryohin Keikaku
The main advantage of trading using opposite AGF Management and Ryohin Keikaku positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Ryohin Keikaku 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 Ryohin Keikaku will offset losses from the drop in Ryohin Keikaku's long position.| AGF Management vs. Keck Seng Investments | AGF Management vs. Cleanaway Waste Management | AGF Management vs. SLR Investment Corp | AGF Management vs. British American Tobacco |
| Ryohin Keikaku vs. PennantPark Investment | Ryohin Keikaku vs. New Residential Investment | Ryohin Keikaku vs. ZhongAn Online P | Ryohin Keikaku vs. MOLSON RS BEVERAGE |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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