Correlation Between AGF Management and Bounce Mobile
Can any of the company-specific risk be diversified away by investing in both AGF Management and Bounce Mobile 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 Bounce Mobile 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 Bounce Mobile Systems, you can compare the effects of market volatilities on AGF Management and Bounce Mobile 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 Bounce Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Bounce Mobile.
Diversification Opportunities for AGF Management and Bounce Mobile
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGF and Bounce is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Bounce Mobile Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bounce Mobile Systems 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 Bounce Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bounce Mobile Systems has no effect on the direction of AGF Management i.e., AGF Management and Bounce Mobile go up and down completely randomly.
Pair Corralation between AGF Management and Bounce Mobile
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.08 times more return on investment than Bounce Mobile. However, AGF Management Limited is 11.98 times less risky than Bounce Mobile. It trades about 0.21 of its potential returns per unit of risk. Bounce Mobile Systems is currently generating about -0.06 per unit of risk. If you would invest 747.00 in AGF Management Limited on August 27, 2024 and sell it today you would earn a total of 53.00 from holding AGF Management Limited or generate 7.1% 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. Bounce Mobile Systems
Performance |
| Timeline |
| AGF Management |
| Bounce Mobile Systems |
AGF Management and Bounce Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Bounce Mobile
The main advantage of trading using opposite AGF Management and Bounce Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Bounce Mobile 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 Bounce Mobile will offset losses from the drop in Bounce Mobile's long position.| AGF Management vs. Invesco High Income | AGF Management vs. Blackrock Muniholdings Ny | AGF Management vs. MFS Investment Grade | AGF Management vs. Federated Premier Municipal |
| Bounce Mobile vs. Blackstone Group | Bounce Mobile vs. BlackRock | Bounce Mobile vs. Apollo Global Management | Bounce Mobile vs. Bank of New |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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