Correlation Between DelphX Capital and AGF Management
Can any of the company-specific risk be diversified away by investing in both DelphX Capital 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 DelphX Capital and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DelphX Capital Markets and AGF Management Limited, you can compare the effects of market volatilities on DelphX Capital 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 DelphX Capital with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of DelphX Capital and AGF Management.
Diversification Opportunities for DelphX Capital and AGF Management
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DelphX and AGF is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding DelphX Capital Markets and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and DelphX Capital 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 DelphX Capital Markets 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 DelphX Capital i.e., DelphX Capital and AGF Management go up and down completely randomly.
Pair Corralation between DelphX Capital and AGF Management
Assuming the 90 days trading horizon DelphX Capital Markets is expected to generate 5.37 times more return on investment than AGF Management. However, DelphX Capital is 5.37 times more volatile than AGF Management Limited. It trades about 0.05 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.09 per unit of risk. If you would invest 9.00 in DelphX Capital Markets on August 31, 2024 and sell it today you would earn a total of 3.00 from holding DelphX Capital Markets or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DelphX Capital Markets vs. AGF Management Limited
Performance |
| Timeline |
| DelphX Capital Markets |
| AGF Management |
DelphX Capital and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DelphX Capital and AGF Management
The main advantage of trading using opposite DelphX Capital and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DelphX Capital 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.| DelphX Capital vs. Verizon Communications CDR | DelphX Capital vs. QC Copper and | DelphX Capital vs. Cogeco Communications | DelphX Capital vs. Data Communications Management |
| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |