Correlation Between ANT and AGF Management
Can any of the company-specific risk be diversified away by investing in both ANT and AGF Management 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 ANT and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and AGF Management Limited, you can compare the effects of market volatilities on ANT and AGF Management 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 ANT with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and AGF Management.
Diversification Opportunities for ANT and AGF Management
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANT and AGF is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ANT and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and ANT 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 ANT are associated (or correlated) with AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of ANT i.e., ANT and AGF Management go up and down completely randomly.
Pair Corralation between ANT and AGF Management
Assuming the 90 days trading horizon ANT is expected to generate 13.94 times more return on investment than AGF Management. However, ANT is 13.94 times more volatile than AGF Management Limited. It trades about 0.09 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.0 per unit of risk. If you would invest 147.00 in ANT on October 21, 2024 and sell it today you would earn a total of 0.00 from holding ANT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
ANT vs. AGF Management Limited
Performance |
| Timeline |
| ANT |
| AGF Management |
ANT and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and AGF Management
The main advantage of trading using opposite ANT and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, AGF Management 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 AGF Management will offset losses from the drop in AGF Management's long position.The idea behind ANT and AGF Management Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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