Correlation Between AGF Management and Yamaha Corp
Can any of the company-specific risk be diversified away by investing in both AGF Management and Yamaha Corp 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 Yamaha Corp 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 Yamaha Corp, you can compare the effects of market volatilities on AGF Management and Yamaha Corp 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 Yamaha Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Yamaha Corp.
Diversification Opportunities for AGF Management and Yamaha Corp
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and Yamaha is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Yamaha Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Corp 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 Yamaha Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Corp has no effect on the direction of AGF Management i.e., AGF Management and Yamaha Corp go up and down completely randomly.
Pair Corralation between AGF Management and Yamaha Corp
Assuming the 90 days horizon AGF Management Limited is expected to under-perform the Yamaha Corp. But the stock apears to be less risky and, when comparing its historical volatility, AGF Management Limited is 1.12 times less risky than Yamaha Corp. The stock trades about -0.12 of its potential returns per unit of risk. The Yamaha Corp is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Yamaha Corp on October 12, 2024 and sell it today you would lose (12.00) from holding Yamaha Corp or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
AGF Management Limited vs. Yamaha Corp
Performance |
| Timeline |
| AGF Management |
| Yamaha Corp |
AGF Management and Yamaha Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Yamaha Corp
The main advantage of trading using opposite AGF Management and Yamaha Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Yamaha Corp 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 Yamaha Corp will offset losses from the drop in Yamaha Corp's long position.| AGF Management vs. Ares Management Corp | AGF Management vs. Superior Plus Corp | AGF Management vs. NMI Holdings | AGF Management vs. SIVERS SEMICONDUCTORS AB |
| Yamaha Corp vs. AGF Management Limited | Yamaha Corp vs. Zoom Video Communications | Yamaha Corp vs. Coor Service Management | Yamaha Corp vs. CeoTronics AG |
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
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |