Correlation Between AGF Management and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both AGF Management and Grand Canyon 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 Grand Canyon 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 Grand Canyon Education, you can compare the effects of market volatilities on AGF Management and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Grand Canyon.
Diversification Opportunities for AGF Management and Grand Canyon
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGF and Grand is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of AGF Management i.e., AGF Management and Grand Canyon go up and down completely randomly.
Pair Corralation between AGF Management and Grand Canyon
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.88 times more return on investment than Grand Canyon. However, AGF Management Limited is 1.14 times less risky than Grand Canyon. It trades about 0.19 of its potential returns per unit of risk. Grand Canyon Education is currently generating about 0.08 per unit of risk. If you would invest 531.00 in AGF Management Limited on August 27, 2024 and sell it today you would earn a total of 194.00 from holding AGF Management Limited or generate 36.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Grand Canyon Education
Performance |
| Timeline |
| AGF Management |
| Grand Canyon Education |
AGF Management and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Grand Canyon
The main advantage of trading using opposite AGF Management and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| AGF Management vs. The Bank of | AGF Management vs. Superior Plus Corp | AGF Management vs. NMI Holdings | AGF Management vs. Origin Agritech |
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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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