Correlation Between AGF Management and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both AGF Management and Sangoma Technologies 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 Sangoma Technologies 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 Sangoma Technologies Corp, you can compare the effects of market volatilities on AGF Management and Sangoma Technologies 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 Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Sangoma Technologies.
Diversification Opportunities for AGF Management and Sangoma Technologies
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and Sangoma is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of AGF Management i.e., AGF Management and Sangoma Technologies go up and down completely randomly.
Pair Corralation between AGF Management and Sangoma Technologies
Assuming the 90 days trading horizon AGF Management is expected to generate 1.58 times less return on investment than Sangoma Technologies. But when comparing it to its historical volatility, AGF Management Limited is 1.94 times less risky than Sangoma Technologies. It trades about 0.06 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 474.00 in Sangoma Technologies Corp on November 27, 2024 and sell it today you would earn a total of 352.00 from holding Sangoma Technologies Corp or generate 74.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Sangoma Technologies Corp
Performance |
| Timeline |
| AGF Management |
| Sangoma Technologies Corp |
AGF Management and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Sangoma Technologies
The main advantage of trading using opposite AGF Management and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Sangoma Technologies 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
| Sangoma Technologies vs. Sylogist | Sangoma Technologies vs. Converge Technology Solutions | Sangoma Technologies vs. Propel Holdings | Sangoma Technologies vs. Vitalhub 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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