Correlation Between Core Alternative and AGFiQ Market
Can any of the company-specific risk be diversified away by investing in both Core Alternative and AGFiQ Market 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 Core Alternative and AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Alternative ETF and AGFiQ Market Neutral, you can compare the effects of market volatilities on Core Alternative and AGFiQ Market 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 Core Alternative with a short position of AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Alternative and AGFiQ Market.
Diversification Opportunities for Core Alternative and AGFiQ Market
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Core and AGFiQ is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Core Alternative ETF and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral and Core Alternative 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 Core Alternative ETF are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of Core Alternative i.e., Core Alternative and AGFiQ Market go up and down completely randomly.
Pair Corralation between Core Alternative and AGFiQ Market
Given the investment horizon of 90 days Core Alternative ETF is expected to generate 0.79 times more return on investment than AGFiQ Market. However, Core Alternative ETF is 1.27 times less risky than AGFiQ Market. It trades about 0.14 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about 0.05 per unit of risk. If you would invest 2,643 in Core Alternative ETF on January 12, 2025 and sell it today you would earn a total of 141.00 from holding Core Alternative ETF or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Alternative ETF vs. AGFiQ Market Neutral
Performance |
| Timeline |
| Core Alternative ETF |
| AGFiQ Market Neutral |
Core Alternative and AGFiQ Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Alternative and AGFiQ Market
The main advantage of trading using opposite Core Alternative and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Alternative position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market's long position.| Core Alternative vs. Cambria Global Momentum | Core Alternative vs. Cambria Emerging Shareholder | Core Alternative vs. Cambria Shareholder Yield | Core Alternative vs. Cambria Foreign Shareholder |
| AGFiQ Market vs. Cambria Tail Risk | AGFiQ Market vs. IQ Merger Arbitrage | AGFiQ Market vs. Amplify BlackSwan Growth | AGFiQ Market vs. AdvisorShares Dorsey Wright |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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