Correlation Between Salesforce and AGF Management
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and AGF Management Limited, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and AGF Management.
Diversification Opportunities for Salesforce and AGF Management
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salesforce and AGF is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and AGF Management go up and down completely randomly.
Pair Corralation between Salesforce and AGF Management
Assuming the 90 days trading horizon Salesforce is expected to under-perform the AGF Management. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 1.04 times less risky than AGF Management. The stock trades about -0.28 of its potential returns per unit of risk. The AGF Management Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 730.00 in AGF Management Limited on November 28, 2024 and sell it today you would earn a total of 25.00 from holding AGF Management Limited or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. AGF Management Limited
Performance |
| Timeline |
| Salesforce |
| AGF Management |
Salesforce and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and AGF Management
The main advantage of trading using opposite Salesforce and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. SPORTING | Salesforce vs. Gaztransport et technigaz | Salesforce vs. SCIENCE IN SPORT | Salesforce vs. SOEDER SPORTFISKE AB |
| AGF Management vs. Entravision Communications | AGF Management vs. Marie Brizard Wine | AGF Management vs. Spirent Communications plc | AGF Management vs. INTERSHOP Communications Aktiengesellschaft |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |