Correlation Between Fukuyama Transporting and AGF Management
Can any of the company-specific risk be diversified away by investing in both Fukuyama Transporting 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 Fukuyama Transporting and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fukuyama Transporting Co and AGF Management Limited, you can compare the effects of market volatilities on Fukuyama Transporting 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 Fukuyama Transporting with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuyama Transporting and AGF Management.
Diversification Opportunities for Fukuyama Transporting and AGF Management
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fukuyama and AGF is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fukuyama Transporting Co and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Fukuyama Transporting 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 Fukuyama Transporting Co 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 Fukuyama Transporting i.e., Fukuyama Transporting and AGF Management go up and down completely randomly.
Pair Corralation between Fukuyama Transporting and AGF Management
Assuming the 90 days horizon Fukuyama Transporting Co is expected to under-perform the AGF Management. But the stock apears to be less risky and, when comparing its historical volatility, Fukuyama Transporting Co is 1.29 times less risky than AGF Management. The stock trades about -0.04 of its potential returns per unit of risk. The AGF Management Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 693.00 in AGF Management Limited on October 25, 2024 and sell it today you would earn a total of 27.00 from holding AGF Management Limited or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fukuyama Transporting Co vs. AGF Management Limited
Performance |
| Timeline |
| Fukuyama Transporting |
| AGF Management |
Fukuyama Transporting and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuyama Transporting and AGF Management
The main advantage of trading using opposite Fukuyama Transporting and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuyama Transporting 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.| Fukuyama Transporting vs. Old Dominion Freight | Fukuyama Transporting vs. Heartland Express | Fukuyama Transporting vs. Superior Plus Corp | Fukuyama Transporting vs. Origin Agritech |
| AGF Management vs. Blackstone Group | AGF Management vs. The Bank of | AGF Management vs. Ameriprise Financial | AGF Management vs. State Street |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |