Correlation Between AGF Management and SPoT Coffee
Can any of the company-specific risk be diversified away by investing in both AGF Management and SPoT Coffee 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 SPoT Coffee 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 SPoT Coffee, you can compare the effects of market volatilities on AGF Management and SPoT Coffee 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 SPoT Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and SPoT Coffee.
Diversification Opportunities for AGF Management and SPoT Coffee
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGF and SPoT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and SPoT Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPoT Coffee 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 SPoT Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPoT Coffee has no effect on the direction of AGF Management i.e., AGF Management and SPoT Coffee go up and down completely randomly.
Pair Corralation between AGF Management and SPoT Coffee
If you would invest 1,053 in AGF Management Limited on August 27, 2024 and sell it today you would earn a total of 21.00 from holding AGF Management Limited or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. SPoT Coffee
Performance |
| Timeline |
| AGF Management |
| SPoT Coffee |
AGF Management and SPoT Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and SPoT Coffee
The main advantage of trading using opposite AGF Management and SPoT Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, SPoT Coffee 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 SPoT Coffee will offset losses from the drop in SPoT Coffee'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 |
| SPoT Coffee vs. Apple Inc CDR | SPoT Coffee vs. Berkshire Hathaway CDR | SPoT Coffee vs. Microsoft Corp CDR | SPoT Coffee vs. Alphabet Inc CDR |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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