Correlation Between AGF Management and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both AGF Management and Nicola Mining 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 Nicola Mining 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 Nicola Mining, you can compare the effects of market volatilities on AGF Management and Nicola Mining 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 Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Nicola Mining.
Diversification Opportunities for AGF Management and Nicola Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between AGF and Nicola is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining 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 Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of AGF Management i.e., AGF Management and Nicola Mining go up and down completely randomly.
Pair Corralation between AGF Management and Nicola Mining
Assuming the 90 days trading horizon AGF Management is expected to generate 2.27 times less return on investment than Nicola Mining. But when comparing it to its historical volatility, AGF Management Limited is 4.25 times less risky than Nicola Mining. It trades about 0.06 of its potential returns per unit of risk. Nicola Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Nicola Mining on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Nicola Mining or generate 13.33% 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. Nicola Mining
Performance |
| Timeline |
| AGF Management |
| Nicola Mining |
AGF Management and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Nicola Mining
The main advantage of trading using opposite AGF Management and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Nicola Mining 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 Nicola Mining will offset losses from the drop in Nicola Mining's long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Magna Terra Minerals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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