Correlation Between AGF Investments and VanEck ETF
Can any of the company-specific risk be diversified away by investing in both AGF Investments and VanEck ETF 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 AGF Investments and VanEck ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGF Investments and VanEck ETF Trust, you can compare the effects of market volatilities on AGF Investments and VanEck ETF 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 AGF Investments with a short position of VanEck ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Investments and VanEck ETF.
Diversification Opportunities for AGF Investments and VanEck ETF
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGF and VanEck is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AGF Investments and VanEck ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck ETF Trust and AGF Investments 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 AGF Investments are associated (or correlated) with VanEck ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck ETF Trust has no effect on the direction of AGF Investments i.e., AGF Investments and VanEck ETF go up and down completely randomly.
Pair Corralation between AGF Investments and VanEck ETF
If you would invest 3,514 in VanEck ETF Trust on August 30, 2024 and sell it today you would earn a total of 196.00 from holding VanEck ETF Trust or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
AGF Investments vs. VanEck ETF Trust
Performance |
| Timeline |
| AGF Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VanEck ETF Trust |
AGF Investments and VanEck ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Investments and VanEck ETF
The main advantage of trading using opposite AGF Investments and VanEck ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Investments position performs unexpectedly, VanEck ETF 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 VanEck ETF will offset losses from the drop in VanEck ETF's long position.| AGF Investments vs. ProShares DJ Brookfield | AGF Investments vs. ClearBridge Sustainable Infrastructure | AGF Investments vs. FlexShares STOXX Global | AGF Investments vs. SPDR SP Global |
| VanEck ETF vs. Vanguard Mid Cap Index | VanEck ETF vs. Vanguard Extended Market | VanEck ETF vs. iShares Core SP | VanEck ETF vs. iShares Russell Mid Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |