Correlation Between AGF Management and Avanos Medical
Can any of the company-specific risk be diversified away by investing in both AGF Management and Avanos 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 Avanos 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 Avanos Medical, you can compare the effects of market volatilities on AGF Management and Avanos 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 Avanos Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Avanos Medical.
Diversification Opportunities for AGF Management and Avanos Medical
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGF and Avanos is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Avanos Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avanos Medical 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 Avanos Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avanos Medical has no effect on the direction of AGF Management i.e., AGF Management and Avanos Medical go up and down completely randomly.
Pair Corralation between AGF Management and Avanos Medical
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.73 times more return on investment than Avanos Medical. However, AGF Management Limited is 1.36 times less risky than Avanos Medical. It trades about 0.21 of its potential returns per unit of risk. Avanos Medical is currently generating about 0.11 per unit of risk. If you would invest 670.00 in AGF Management Limited on September 1, 2024 and sell it today you would earn a total of 65.00 from holding AGF Management Limited or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Avanos Medical
Performance |
| Timeline |
| AGF Management |
| Avanos Medical |
AGF Management and Avanos Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Avanos Medical
The main advantage of trading using opposite AGF Management and Avanos Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Avanos 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 Avanos Medical will offset losses from the drop in Avanos Medical's long position.| AGF Management vs. UNIVMUSIC GRPADR050 | AGF Management vs. PLAY2CHILL SA ZY | AGF Management vs. BOS BETTER ONLINE | AGF Management vs. COLUMBIA SPORTSWEAR |
| Avanos Medical vs. Apple Inc | Avanos Medical vs. Apple Inc | Avanos Medical vs. Apple Inc | Avanos Medical vs. Apple Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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