Correlation Between AGF Management and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both AGF Management and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on AGF Management and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and FUYO GENERAL.
Diversification Opportunities for AGF Management and FUYO GENERAL
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and FUYO is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of AGF Management i.e., AGF Management and FUYO GENERAL go up and down completely randomly.
Pair Corralation between AGF Management and FUYO GENERAL
Assuming the 90 days horizon AGF Management Limited is expected to generate 1.52 times more return on investment than FUYO GENERAL. However, AGF Management is 1.52 times more volatile than FUYO GENERAL LEASE. It trades about 0.2 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.25 per unit of risk. If you would invest 675.00 in AGF Management Limited on August 31, 2024 and sell it today you would earn a total of 60.00 from holding AGF Management Limited or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| AGF Management |
| FUYO GENERAL LEASE |
AGF Management and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and FUYO GENERAL
The main advantage of trading using opposite AGF Management and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| AGF Management vs. AXWAY SOFTWARE EO | AGF Management vs. Kaiser Aluminum | AGF Management vs. Jacquet Metal Service | AGF Management vs. Aluminum of |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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