Correlation Between AGF Management and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both AGF Management and Safestore 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 Safestore 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 Safestore Holdings plc, you can compare the effects of market volatilities on AGF Management and Safestore 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Safestore Holdings.
Diversification Opportunities for AGF Management and Safestore Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and Safestore is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of AGF Management i.e., AGF Management and Safestore Holdings go up and down completely randomly.
Pair Corralation between AGF Management and Safestore Holdings
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.47 times more return on investment than Safestore Holdings. However, AGF Management Limited is 2.14 times less risky than Safestore Holdings. It trades about -0.23 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.12 per unit of risk. If you would invest 698.00 in AGF Management Limited on October 18, 2024 and sell it today you would lose (33.00) from holding AGF Management Limited or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Safestore Holdings plc
Performance |
| Timeline |
| AGF Management |
| Safestore Holdings plc |
AGF Management and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Safestore Holdings
The main advantage of trading using opposite AGF Management and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Safestore 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| AGF Management vs. JAPAN AIRLINES | AGF Management vs. LOANDEPOT INC A | AGF Management vs. China Eastern Airlines | AGF Management vs. Jacquet Metal Service |
| Safestore Holdings vs. China Datang | Safestore Holdings vs. CN DATANG C | Safestore Holdings vs. AGF Management Limited | Safestore Holdings vs. Platinum Investment Management |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |