Correlation Between AGF Management and Crown Holdings
Can any of the company-specific risk be diversified away by investing in both AGF Management and Crown Holdings 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 Crown Holdings 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 Crown Holdings, you can compare the effects of market volatilities on AGF Management and Crown Holdings 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 Crown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Crown Holdings.
Diversification Opportunities for AGF Management and Crown Holdings
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGF and Crown is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings 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 Crown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Holdings has no effect on the direction of AGF Management i.e., AGF Management and Crown Holdings go up and down completely randomly.
Pair Corralation between AGF Management and Crown Holdings
Assuming the 90 days horizon AGF Management Limited is expected to generate 1.31 times more return on investment than Crown Holdings. However, AGF Management is 1.31 times more volatile than Crown Holdings. It trades about 0.14 of its potential returns per unit of risk. Crown Holdings is currently generating about 0.1 per unit of risk. If you would invest 690.00 in AGF Management Limited on September 3, 2024 and sell it today you would earn a total of 40.00 from holding AGF Management Limited or generate 5.8% 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. Crown Holdings
Performance |
| Timeline |
| AGF Management |
| Crown Holdings |
AGF Management and Crown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Crown Holdings
The main advantage of trading using opposite AGF Management and Crown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Crown Holdings 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 Crown Holdings will offset losses from the drop in Crown Holdings' long position.| AGF Management vs. American Eagle Outfitters | AGF Management vs. Citic Telecom International | AGF Management vs. Warner Music Group | AGF Management vs. Spirent Communications plc |
| Crown Holdings vs. Gaztransport Technigaz SA | Crown Holdings vs. NTG Nordic Transport | Crown Holdings vs. SEI INVESTMENTS | Crown Holdings vs. BROADSTNET LEADL 00025 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world |