Correlation Between AGFiQ Market and Advocate Capital
Can any of the company-specific risk be diversified away by investing in both AGFiQ Market and Advocate Capital 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 Advocate Capital 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 Advocate Capital Management, you can compare the effects of market volatilities on AGFiQ Market and Advocate Capital 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 Advocate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFiQ Market and Advocate Capital.
Diversification Opportunities for AGFiQ Market and Advocate Capital
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGFiQ and Advocate is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ Market Neutral and Advocate Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advocate Capital Man 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 Advocate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advocate Capital Man has no effect on the direction of AGFiQ Market i.e., AGFiQ Market and Advocate Capital go up and down completely randomly.
Pair Corralation between AGFiQ Market and Advocate Capital
If you would invest 2,385 in Advocate Capital Management on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Advocate Capital Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
AGFiQ Market Neutral vs. Advocate Capital Management
Performance |
| Timeline |
| AGFiQ Market Neutral |
| Advocate Capital Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGFiQ Market and Advocate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGFiQ Market and Advocate Capital
The main advantage of trading using opposite AGFiQ Market and Advocate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFiQ Market position performs unexpectedly, Advocate Capital 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 Advocate Capital will offset losses from the drop in Advocate Capital's 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 |
| Advocate Capital vs. Simplify Interest Rate | Advocate Capital vs. KFA Mount Lucas | Advocate Capital vs. Simplify Exchange Traded | Advocate Capital vs. AGFiQ Market Neutral |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |