Correlation Between Fiera Capital and AGF Management
Can any of the company-specific risk be diversified away by investing in both Fiera 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 Fiera 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 Fiera Capital and AGF Management Limited, you can compare the effects of market volatilities on Fiera 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 Fiera Capital with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and AGF Management.
Diversification Opportunities for Fiera Capital and AGF Management
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fiera and AGF is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Fiera 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 Fiera Capital 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 Fiera Capital i.e., Fiera Capital and AGF Management go up and down completely randomly.
Pair Corralation between Fiera Capital and AGF Management
Assuming the 90 days horizon Fiera Capital is expected to generate 2.61 times less return on investment than AGF Management. In addition to that, Fiera Capital is 1.59 times more volatile than AGF Management Limited. It trades about 0.05 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.19 per unit of volatility. If you would invest 747.00 in AGF Management Limited on August 29, 2024 and sell it today you would earn a total of 49.00 from holding AGF Management Limited or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.36% |
| Values | Daily Returns |
Fiera Capital vs. AGF Management Limited
Performance |
| Timeline |
| Fiera Capital |
| AGF Management |
Fiera Capital and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and AGF Management
The main advantage of trading using opposite Fiera Capital and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera 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.| Fiera Capital vs. AGF Management Limited | Fiera Capital vs. Azimut Holding SpA | Fiera Capital vs. Ameritrans Capital Corp | Fiera Capital vs. Elysee Development Corp |
| AGF Management vs. Fiera Capital | AGF Management vs. Ameritrans Capital Corp | AGF Management vs. Bounce Mobile Systems | AGF Management vs. Elysee Development Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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