Correlation Between AGF Management and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both AGF Management and Apollo Investment 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 Apollo Investment 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 Apollo Investment Corp, you can compare the effects of market volatilities on AGF Management and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Apollo Investment.
Diversification Opportunities for AGF Management and Apollo Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGF and Apollo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of AGF Management i.e., AGF Management and Apollo Investment go up and down completely randomly.
Pair Corralation between AGF Management and Apollo Investment
Assuming the 90 days horizon AGF Management Limited is expected to generate 1.77 times more return on investment than Apollo Investment. However, AGF Management is 1.77 times more volatile than Apollo Investment Corp. It trades about 0.2 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.31 per unit of risk. If you would invest 670.00 in AGF Management Limited on September 2, 2024 and sell it today you would earn a total of 60.00 from holding AGF Management Limited or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Apollo Investment Corp
Performance |
| Timeline |
| AGF Management |
| Apollo Investment Corp |
AGF Management and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Apollo Investment
The main advantage of trading using opposite AGF Management and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| AGF Management vs. Ameriprise Financial | AGF Management vs. Ares Management Corp | AGF Management vs. Superior Plus Corp | AGF Management vs. NMI Holdings |
| Apollo Investment vs. Charter Communications | Apollo Investment vs. Data3 Limited | Apollo Investment vs. Hyrican Informationssysteme Aktiengesellschaft | Apollo Investment vs. DATAGROUP SE |
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.
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