Correlation Between AGF Management and Pace Metals
Can any of the company-specific risk be diversified away by investing in both AGF Management and Pace Metals 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 Pace Metals 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 Pace Metals, you can compare the effects of market volatilities on AGF Management and Pace Metals 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 Pace Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Pace Metals.
Diversification Opportunities for AGF Management and Pace Metals
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGF and Pace is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Pace Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Metals 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 Pace Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Metals has no effect on the direction of AGF Management i.e., AGF Management and Pace Metals go up and down completely randomly.
Pair Corralation between AGF Management and Pace Metals
If you would invest 16.00 in Pace Metals on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Pace Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
AGF Management Limited vs. Pace Metals
Performance |
| Timeline |
| AGF Management |
| Pace Metals |
AGF Management and Pace Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Pace Metals
The main advantage of trading using opposite AGF Management and Pace Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Pace Metals 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 Pace Metals will offset losses from the drop in Pace Metals' long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
| Pace Metals vs. Metalero Mining Corp | Pace Metals vs. NeXGold Mining Corp | Pace Metals vs. Magna Mining | Pace Metals vs. T2 Metals 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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