Correlation Between De Grey and AGF Management
Can any of the company-specific risk be diversified away by investing in both De Grey 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 De Grey and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and AGF Management Limited, you can compare the effects of market volatilities on De Grey 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 De Grey with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and AGF Management.
Diversification Opportunities for De Grey and AGF Management
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between DGD and AGF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and De Grey 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 De Grey Mining 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 De Grey i.e., De Grey and AGF Management go up and down completely randomly.
Pair Corralation between De Grey and AGF Management
Assuming the 90 days trading horizon De Grey Mining is expected to generate 1.12 times more return on investment than AGF Management. However, De Grey is 1.12 times more volatile than AGF Management Limited. It trades about 0.27 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.11 per unit of risk. If you would invest 108.00 in De Grey Mining on November 5, 2024 and sell it today you would earn a total of 12.00 from holding De Grey Mining or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Grey Mining vs. AGF Management Limited
Performance |
| Timeline |
| De Grey Mining |
| AGF Management |
De Grey and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and AGF Management
The main advantage of trading using opposite De Grey and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey 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.| De Grey vs. INTER CARS SA | De Grey vs. Charter Communications | De Grey vs. Rocket Internet SE | De Grey vs. Geely Automobile Holdings |
| AGF Management vs. Yuexiu Transport Infrastructure | AGF Management vs. Solstad Offshore ASA | AGF Management vs. Transport International Holdings | AGF Management vs. East Africa Metals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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