Correlation Between AGF Management and CRRC
Can any of the company-specific risk be diversified away by investing in both AGF Management and CRRC 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 CRRC 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 CRRC Limited, you can compare the effects of market volatilities on AGF Management and CRRC 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 CRRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and CRRC.
Diversification Opportunities for AGF Management and CRRC
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and CRRC is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and CRRC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRRC Limited 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 CRRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRRC Limited has no effect on the direction of AGF Management i.e., AGF Management and CRRC go up and down completely randomly.
Pair Corralation between AGF Management and CRRC
If you would invest 61.00 in CRRC Limited on October 16, 2024 and sell it today you would earn a total of 0.00 from holding CRRC Limited or generate 0.0% 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. CRRC Limited
Performance |
| Timeline |
| AGF Management |
| CRRC Limited |
AGF Management and CRRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and CRRC
The main advantage of trading using opposite AGF Management and CRRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, CRRC 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 CRRC will offset losses from the drop in CRRC's long position.| AGF Management vs. GEELY AUTOMOBILE | AGF Management vs. Materialise NV | AGF Management vs. T Mobile | AGF Management vs. NEWELL RUBBERMAID |
| CRRC vs. Ribbon Communications | CRRC vs. Jacquet Metal Service | CRRC vs. Stag Industrial | CRRC vs. MAGNUM MINING EXP |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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