Correlation Between AGF Management and Enbridge Pref
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By analyzing existing cross correlation between AGF Management Limited and Enbridge Pref 5, you can compare the effects of market volatilities on AGF Management and Enbridge Pref 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 Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Enbridge Pref.
Diversification Opportunities for AGF Management and Enbridge Pref
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AGF and Enbridge is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 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 Enbridge Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref 5 has no effect on the direction of AGF Management i.e., AGF Management and Enbridge Pref go up and down completely randomly.
Pair Corralation between AGF Management and Enbridge Pref
Assuming the 90 days trading horizon AGF Management Limited is expected to generate 4.25 times more return on investment than Enbridge Pref. However, AGF Management is 4.25 times more volatile than Enbridge Pref 5. It trades about 0.12 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.25 per unit of risk. If you would invest 1,033 in AGF Management Limited on August 25, 2024 and sell it today you would earn a total of 41.00 from holding AGF Management Limited or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
AGF Management Limited vs. Enbridge Pref 5
Performance |
| Timeline |
| AGF Management |
| Enbridge Pref 5 |
AGF Management and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Enbridge Pref
The main advantage of trading using opposite AGF Management and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Enbridge Pref 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 Enbridge Pref will offset losses from the drop in Enbridge Pref's long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
| Enbridge Pref vs. East Side Games | Enbridge Pref vs. Leons Furniture Limited | Enbridge Pref vs. AGF Management Limited | Enbridge Pref vs. Highwood Asset 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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