Correlation Between AGF Management and Jamieson Wellness
Can any of the company-specific risk be diversified away by investing in both AGF Management and Jamieson Wellness 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 Jamieson Wellness 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 Jamieson Wellness, you can compare the effects of market volatilities on AGF Management and Jamieson Wellness 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 Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Jamieson Wellness.
Diversification Opportunities for AGF Management and Jamieson Wellness
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGF and Jamieson is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness 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 Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of AGF Management i.e., AGF Management and Jamieson Wellness go up and down completely randomly.
Pair Corralation between AGF Management and Jamieson Wellness
Assuming the 90 days trading horizon AGF Management Limited is expected to generate 1.25 times more return on investment than Jamieson Wellness. However, AGF Management is 1.25 times more volatile than Jamieson Wellness. It trades about 0.21 of its potential returns per unit of risk. Jamieson Wellness is currently generating about -0.19 per unit of risk. If you would invest 1,065 in AGF Management Limited on October 26, 2024 and sell it today you would earn a total of 65.00 from holding AGF Management Limited or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Jamieson Wellness
Performance |
| Timeline |
| AGF Management |
| Jamieson Wellness |
AGF Management and Jamieson Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Jamieson Wellness
The main advantage of trading using opposite AGF Management and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Jamieson Wellness 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 Jamieson Wellness will offset losses from the drop in Jamieson Wellness' long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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