Correlation Between AGF Management and Unity Software
Can any of the company-specific risk be diversified away by investing in both AGF Management and Unity Software 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 Unity Software 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 Unity Software, you can compare the effects of market volatilities on AGF Management and Unity Software 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 Unity Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Unity Software.
Diversification Opportunities for AGF Management and Unity Software
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGF and Unity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Unity Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unity Software 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 Unity Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unity Software has no effect on the direction of AGF Management i.e., AGF Management and Unity Software go up and down completely randomly.
Pair Corralation between AGF Management and Unity Software
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.29 times more return on investment than Unity Software. However, AGF Management Limited is 3.43 times less risky than Unity Software. It trades about -0.09 of its potential returns per unit of risk. Unity Software is currently generating about -0.16 per unit of risk. If you would invest 708.00 in AGF Management Limited on October 12, 2024 and sell it today you would lose (13.00) from holding AGF Management Limited or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Unity Software
Performance |
| Timeline |
| AGF Management |
| Unity Software |
AGF Management and Unity Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Unity Software
The main advantage of trading using opposite AGF Management and Unity Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Unity Software 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 Unity Software will offset losses from the drop in Unity Software's long position.| AGF Management vs. Yuexiu Transport Infrastructure | AGF Management vs. TITANIUM TRANSPORTGROUP | AGF Management vs. USWE SPORTS AB | AGF Management vs. Fukuyama Transporting Co |
| Unity Software vs. CHINA EDUCATION GROUP | Unity Software vs. Live Nation Entertainment | Unity Software vs. Xinhua Winshare Publishing | Unity Software vs. Flutter Entertainment PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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