Correlation Between AGF Management and NVIDIA CDR
Can any of the company-specific risk be diversified away by investing in both AGF Management and NVIDIA CDR 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 NVIDIA CDR 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 NVIDIA CDR, you can compare the effects of market volatilities on AGF Management and NVIDIA CDR 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 NVIDIA CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and NVIDIA CDR.
Diversification Opportunities for AGF Management and NVIDIA CDR
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AGF and NVIDIA is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and NVIDIA CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA 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 NVIDIA CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA CDR has no effect on the direction of AGF Management i.e., AGF Management and NVIDIA CDR go up and down completely randomly.
Pair Corralation between AGF Management and NVIDIA CDR
Assuming the 90 days trading horizon AGF Management Limited is expected to generate 0.58 times more return on investment than NVIDIA CDR. However, AGF Management Limited is 1.73 times less risky than NVIDIA CDR. It trades about 0.14 of its potential returns per unit of risk. NVIDIA CDR is currently generating about 0.06 per unit of risk. If you would invest 822.00 in AGF Management Limited on August 28, 2024 and sell it today you would earn a total of 303.00 from holding AGF Management Limited or generate 36.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. NVIDIA CDR
Performance |
| Timeline |
| AGF Management |
| NVIDIA CDR |
AGF Management and NVIDIA CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and NVIDIA CDR
The main advantage of trading using opposite AGF Management and NVIDIA CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, NVIDIA CDR 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 NVIDIA CDR will offset losses from the drop in NVIDIA CDR's long position.| AGF Management vs. NVIDIA CDR | AGF Management vs. Apple Inc CDR | AGF Management vs. Microsoft Corp CDR | AGF Management vs. Amazon CDR |
| NVIDIA CDR vs. Birchtech Corp | NVIDIA CDR vs. Evertz Technologies Limited | NVIDIA CDR vs. Diamond Estates Wines | NVIDIA CDR vs. Lion One Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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