Correlation Between AGFiQ Market and Northern Lights
Can any of the company-specific risk be diversified away by investing in both AGFiQ Market and Northern Lights 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 AGFiQ Market and Northern Lights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFiQ Market Neutral and Northern Lights, you can compare the effects of market volatilities on AGFiQ Market and Northern Lights 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 AGFiQ Market with a short position of Northern Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFiQ Market and Northern Lights.
Diversification Opportunities for AGFiQ Market and Northern Lights
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGFiQ and Northern is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ Market Neutral and Northern Lights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lights and AGFiQ Market 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 AGFiQ Market Neutral are associated (or correlated) with Northern Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lights has no effect on the direction of AGFiQ Market i.e., AGFiQ Market and Northern Lights go up and down completely randomly.
Pair Corralation between AGFiQ Market and Northern Lights
Given the investment horizon of 90 days AGFiQ Market is expected to generate 31.41 times less return on investment than Northern Lights. In addition to that, AGFiQ Market is 1.28 times more volatile than Northern Lights. It trades about 0.0 of its total potential returns per unit of risk. Northern Lights is currently generating about 0.07 per unit of volatility. If you would invest 1,981 in Northern Lights on September 3, 2024 and sell it today you would earn a total of 401.00 from holding Northern Lights or generate 20.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 73.94% |
| Values | Daily Returns |
AGFiQ Market Neutral vs. Northern Lights
Performance |
| Timeline |
| AGFiQ Market Neutral |
| Northern Lights |
AGFiQ Market and Northern Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGFiQ Market and Northern Lights
The main advantage of trading using opposite AGFiQ Market and Northern Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFiQ Market position performs unexpectedly, Northern Lights 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 Northern Lights will offset losses from the drop in Northern Lights' long position.| AGFiQ Market vs. Cambria Tail Risk | AGFiQ Market vs. IQ Merger Arbitrage | AGFiQ Market vs. Amplify BlackSwan Growth | AGFiQ Market vs. AdvisorShares Dorsey Wright |
| Northern Lights vs. KFA Mount Lucas | Northern Lights vs. AGFiQ Market Neutral | Northern Lights vs. iMGP DBi Managed | Northern Lights vs. First Trust LongShort |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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