Correlation Between AGF Management and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both AGF Management and GLG LIFE 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 GLG LIFE 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 GLG LIFE TECH, you can compare the effects of market volatilities on AGF Management and GLG LIFE 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 GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and GLG LIFE.
Diversification Opportunities for AGF Management and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGF and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH 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 GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of AGF Management i.e., AGF Management and GLG LIFE go up and down completely randomly.
Pair Corralation between AGF Management and GLG LIFE
If you would invest 684.00 in AGF Management Limited on October 30, 2024 and sell it today you would earn a total of 46.00 from holding AGF Management Limited or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. GLG LIFE TECH
Performance |
| Timeline |
| AGF Management |
| GLG LIFE TECH |
AGF Management and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and GLG LIFE
The main advantage of trading using opposite AGF Management and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.| AGF Management vs. Air New Zealand | AGF Management vs. Corsair Gaming | AGF Management vs. MeVis Medical Solutions | AGF Management vs. Delta Air Lines |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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