Correlation Between AGF Management and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both AGF Management and Dalata Hotel 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 Dalata Hotel 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 Dalata Hotel Group, you can compare the effects of market volatilities on AGF Management and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Dalata Hotel.
Diversification Opportunities for AGF Management and Dalata Hotel
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGF and Dalata is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of AGF Management i.e., AGF Management and Dalata Hotel go up and down completely randomly.
Pair Corralation between AGF Management and Dalata Hotel
Assuming the 90 days horizon AGF Management Limited is expected to generate 1.04 times more return on investment than Dalata Hotel. However, AGF Management is 1.04 times more volatile than Dalata Hotel Group. It trades about 0.07 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.05 per unit of risk. If you would invest 379.00 in AGF Management Limited on September 13, 2024 and sell it today you would earn a total of 346.00 from holding AGF Management Limited or generate 91.29% 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. Dalata Hotel Group
Performance |
| Timeline |
| AGF Management |
| Dalata Hotel Group |
AGF Management and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Dalata Hotel
The main advantage of trading using opposite AGF Management and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| AGF Management vs. Ameriprise Financial | AGF Management vs. Ares Management Corp | AGF Management vs. Superior Plus Corp | AGF Management vs. SIVERS SEMICONDUCTORS AB |
| Dalata Hotel vs. Columbia Sportswear | Dalata Hotel vs. Transportadora de Gas | Dalata Hotel vs. Q2M Managementberatung AG | Dalata Hotel vs. AGF Management Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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