Correlation Between AGF Management and Elysee Development
Can any of the company-specific risk be diversified away by investing in both AGF Management and Elysee Development 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 Elysee Development 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 Elysee Development Corp, you can compare the effects of market volatilities on AGF Management and Elysee Development 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 Elysee Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Elysee Development.
Diversification Opportunities for AGF Management and Elysee Development
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AGF and Elysee is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Elysee Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elysee Development 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 Elysee Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elysee Development Corp has no effect on the direction of AGF Management i.e., AGF Management and Elysee Development go up and down completely randomly.
Pair Corralation between AGF Management and Elysee Development
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.24 times more return on investment than Elysee Development. However, AGF Management Limited is 4.15 times less risky than Elysee Development. It trades about 0.19 of its potential returns per unit of risk. Elysee Development Corp is currently generating about -0.08 per unit of risk. If you would invest 747.00 in AGF Management Limited on August 28, 2024 and sell it today you would earn a total of 49.00 from holding AGF Management Limited or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Elysee Development Corp
Performance |
| Timeline |
| AGF Management |
| Elysee Development Corp |
AGF Management and Elysee Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Elysee Development
The main advantage of trading using opposite AGF Management and Elysee Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Elysee Development 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 Elysee Development will offset losses from the drop in Elysee Development's long position.| AGF Management vs. Fiera Capital | AGF Management vs. Ameritrans Capital Corp | AGF Management vs. Bounce Mobile Systems | AGF Management vs. Elysee Development Corp |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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