Correlation Between AGF Management and Nanalysis Scientific
Can any of the company-specific risk be diversified away by investing in both AGF Management and Nanalysis Scientific 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 Nanalysis Scientific 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 Nanalysis Scientific Corp, you can compare the effects of market volatilities on AGF Management and Nanalysis Scientific 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 Nanalysis Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Nanalysis Scientific.
Diversification Opportunities for AGF Management and Nanalysis Scientific
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and Nanalysis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Nanalysis Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanalysis Scientific Corp 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 Nanalysis Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanalysis Scientific Corp has no effect on the direction of AGF Management i.e., AGF Management and Nanalysis Scientific go up and down completely randomly.
Pair Corralation between AGF Management and Nanalysis Scientific
Assuming the 90 days trading horizon AGF Management Limited is expected to generate 0.56 times more return on investment than Nanalysis Scientific. However, AGF Management Limited is 1.78 times less risky than Nanalysis Scientific. It trades about 0.13 of its potential returns per unit of risk. Nanalysis Scientific Corp is currently generating about -0.07 per unit of risk. If you would invest 806.00 in AGF Management Limited on September 15, 2024 and sell it today you would earn a total of 277.00 from holding AGF Management Limited or generate 34.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
AGF Management Limited vs. Nanalysis Scientific Corp
Performance |
| Timeline |
| AGF Management |
| Nanalysis Scientific Corp |
AGF Management and Nanalysis Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Nanalysis Scientific
The main advantage of trading using opposite AGF Management and Nanalysis Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Nanalysis Scientific 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 Nanalysis Scientific will offset losses from the drop in Nanalysis Scientific's long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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