Correlation Between AGF Management and Brookfield Asset
Can any of the company-specific risk be diversified away by investing in both AGF Management and Brookfield Asset 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 Brookfield Asset 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 Brookfield Asset Management, you can compare the effects of market volatilities on AGF Management and Brookfield Asset 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 Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Brookfield Asset.
Diversification Opportunities for AGF Management and Brookfield Asset
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and Brookfield is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man 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 Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of AGF Management i.e., AGF Management and Brookfield Asset go up and down completely randomly.
Pair Corralation between AGF Management and Brookfield Asset
Assuming the 90 days trading horizon AGF Management is expected to generate 1.27 times less return on investment than Brookfield Asset. In addition to that, AGF Management is 2.11 times more volatile than Brookfield Asset Management. It trades about 0.12 of its total potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.33 per unit of volatility. If you would invest 1,129 in Brookfield Asset Management on August 25, 2024 and sell it today you would earn a total of 60.00 from holding Brookfield Asset Management or generate 5.31% 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. Brookfield Asset Management
Performance |
| Timeline |
| AGF Management |
| Brookfield Asset Man |
AGF Management and Brookfield Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Brookfield Asset
The main advantage of trading using opposite AGF Management and Brookfield Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Brookfield Asset 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 Brookfield Asset will offset losses from the drop in Brookfield Asset's long position.| AGF Management vs. Walmart Inc CDR | AGF Management vs. Amazon CDR | AGF Management vs. UPS CDR | AGF Management vs. HOME DEPOT CDR |
| Brookfield Asset vs. GOLDMAN SACHS CDR | Brookfield Asset vs. Galaxy Digital Holdings | Brookfield Asset vs. Hut 8 Mining | Brookfield Asset vs. Bitfarms |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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