Correlation Between AGF Management and Nuveen Massachusetts
Can any of the company-specific risk be diversified away by investing in both AGF Management and Nuveen Massachusetts 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 Nuveen Massachusetts 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 Nuveen Massachusetts Quality, you can compare the effects of market volatilities on AGF Management and Nuveen Massachusetts 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 Nuveen Massachusetts. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Nuveen Massachusetts.
Diversification Opportunities for AGF Management and Nuveen Massachusetts
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AGF and Nuveen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Nuveen Massachusetts Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Massachusetts 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 Nuveen Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Massachusetts has no effect on the direction of AGF Management i.e., AGF Management and Nuveen Massachusetts go up and down completely randomly.
Pair Corralation between AGF Management and Nuveen Massachusetts
Assuming the 90 days horizon AGF Management Limited is expected to generate 1.97 times more return on investment than Nuveen Massachusetts. However, AGF Management is 1.97 times more volatile than Nuveen Massachusetts Quality. It trades about 0.21 of its potential returns per unit of risk. Nuveen Massachusetts Quality is currently generating about 0.05 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Nuveen Massachusetts Quality
Performance |
| Timeline |
| AGF Management |
| Nuveen Massachusetts |
AGF Management and Nuveen Massachusetts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Nuveen Massachusetts
The main advantage of trading using opposite AGF Management and Nuveen Massachusetts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Nuveen Massachusetts 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 Nuveen Massachusetts will offset losses from the drop in Nuveen Massachusetts' 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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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