Correlation Between BURLINGTON STORES and AGF Management
Can any of the company-specific risk be diversified away by investing in both BURLINGTON STORES 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 BURLINGTON STORES and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BURLINGTON STORES and AGF Management Limited, you can compare the effects of market volatilities on BURLINGTON STORES 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 BURLINGTON STORES with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of BURLINGTON STORES and AGF Management.
Diversification Opportunities for BURLINGTON STORES and AGF Management
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BURLINGTON and AGF is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BURLINGTON STORES and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and BURLINGTON STORES 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 BURLINGTON STORES 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 BURLINGTON STORES i.e., BURLINGTON STORES and AGF Management go up and down completely randomly.
Pair Corralation between BURLINGTON STORES and AGF Management
Assuming the 90 days trading horizon BURLINGTON STORES is expected to under-perform the AGF Management. In addition to that, BURLINGTON STORES is 1.12 times more volatile than AGF Management Limited. It trades about -0.15 of its total potential returns per unit of risk. AGF Management Limited is currently generating about -0.11 per unit of volatility. If you would invest 725.00 in AGF Management Limited on December 13, 2024 and sell it today you would lose (60.00) from holding AGF Management Limited or give up 8.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BURLINGTON STORES vs. AGF Management Limited
Performance |
| Timeline |
| BURLINGTON STORES |
| AGF Management |
BURLINGTON STORES and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BURLINGTON STORES and AGF Management
The main advantage of trading using opposite BURLINGTON STORES and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BURLINGTON STORES 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.| BURLINGTON STORES vs. KOBE STEEL LTD | ||
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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