Correlation Between AGF Management and ONWARD MEDICAL
Can any of the company-specific risk be diversified away by investing in both AGF Management and ONWARD MEDICAL 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 ONWARD MEDICAL 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 ONWARD MEDICAL BV, you can compare the effects of market volatilities on AGF Management and ONWARD MEDICAL 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 ONWARD MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and ONWARD MEDICAL.
Diversification Opportunities for AGF Management and ONWARD MEDICAL
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and ONWARD is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and ONWARD MEDICAL BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONWARD MEDICAL BV 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 ONWARD MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONWARD MEDICAL BV has no effect on the direction of AGF Management i.e., AGF Management and ONWARD MEDICAL go up and down completely randomly.
Pair Corralation between AGF Management and ONWARD MEDICAL
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.56 times more return on investment than ONWARD MEDICAL. However, AGF Management Limited is 1.77 times less risky than ONWARD MEDICAL. It trades about 0.13 of its potential returns per unit of risk. ONWARD MEDICAL BV is currently generating about 0.03 per unit of risk. If you would invest 534.00 in AGF Management Limited on September 27, 2024 and sell it today you would earn a total of 166.00 from holding AGF Management Limited or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. ONWARD MEDICAL BV
Performance |
| Timeline |
| AGF Management |
| ONWARD MEDICAL BV |
AGF Management and ONWARD MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and ONWARD MEDICAL
The main advantage of trading using opposite AGF Management and ONWARD MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, ONWARD MEDICAL 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 ONWARD MEDICAL will offset losses from the drop in ONWARD MEDICAL's long position.| AGF Management vs. Blackstone Group | AGF Management vs. The Bank of | AGF Management vs. Ameriprise Financial | AGF Management vs. T Rowe Price |
| ONWARD MEDICAL vs. Novo Nordisk AS | ONWARD MEDICAL vs. Mercedes Benz Group AG | ONWARD MEDICAL vs. Moderna | ONWARD MEDICAL vs. WUXI BIOLOGICS UNSPADR2 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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