Correlation Between AGF Management and Alphabet
Can any of the company-specific risk be diversified away by investing in both AGF Management and Alphabet 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 Alphabet 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 Alphabet Inc CDR, you can compare the effects of market volatilities on AGF Management and Alphabet 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 Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Alphabet.
Diversification Opportunities for AGF Management and Alphabet
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AGF and Alphabet is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Alphabet Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet CDR 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 Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet CDR has no effect on the direction of AGF Management i.e., AGF Management and Alphabet go up and down completely randomly.
Pair Corralation between AGF Management and Alphabet
Assuming the 90 days trading horizon AGF Management Limited is expected to generate 1.09 times more return on investment than Alphabet. However, AGF Management is 1.09 times more volatile than Alphabet Inc CDR. It trades about 0.1 of its potential returns per unit of risk. Alphabet Inc CDR is currently generating about 0.04 per unit of risk. If you would invest 806.00 in AGF Management Limited on October 13, 2024 and sell it today you would earn a total of 210.00 from holding AGF Management Limited or generate 26.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Alphabet Inc CDR
Performance |
| Timeline |
| AGF Management |
| Alphabet CDR |
AGF Management and Alphabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Alphabet
The main advantage of trading using opposite AGF Management and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet's long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
| Alphabet vs. DRI Healthcare Trust | Alphabet vs. UnitedHealth Group CDR | Alphabet vs. Cogeco Communications | Alphabet vs. AGF Management Limited |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |