Correlation Between Azimut Holding and AGF Management
Can any of the company-specific risk be diversified away by investing in both Azimut Holding 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 Azimut Holding and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azimut Holding SpA and AGF Management Limited, you can compare the effects of market volatilities on Azimut Holding 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 Azimut Holding with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azimut Holding and AGF Management.
Diversification Opportunities for Azimut Holding and AGF Management
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Azimut and AGF is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Azimut Holding SpA and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Azimut Holding 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 Azimut Holding SpA 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 Azimut Holding i.e., Azimut Holding and AGF Management go up and down completely randomly.
Pair Corralation between Azimut Holding and AGF Management
If you would invest 575.00 in AGF Management Limited on August 28, 2024 and sell it today you would earn a total of 221.00 from holding AGF Management Limited or generate 38.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Azimut Holding SpA vs. AGF Management Limited
Performance |
| Timeline |
| Azimut Holding SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AGF Management |
Azimut Holding and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azimut Holding and AGF Management
The main advantage of trading using opposite Azimut Holding and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azimut Holding 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.| Azimut Holding vs. Ameritrans Capital Corp | Azimut Holding vs. Bounce Mobile Systems | Azimut Holding vs. Elysee Development Corp | Azimut Holding vs. AGF Management Limited |
| AGF Management vs. Fiera Capital | AGF Management vs. Ameritrans Capital Corp | AGF Management vs. Bounce Mobile Systems | AGF Management vs. Elysee Development 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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