Correlation Between Hanison Construction and AGF Management
Can any of the company-specific risk be diversified away by investing in both Hanison Construction 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 Hanison Construction and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanison Construction Holdings and AGF Management Limited, you can compare the effects of market volatilities on Hanison Construction 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 Hanison Construction with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanison Construction and AGF Management.
Diversification Opportunities for Hanison Construction and AGF Management
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanison and AGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanison Construction Holdings and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Hanison Construction 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 Hanison Construction Holdings 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 Hanison Construction i.e., Hanison Construction and AGF Management go up and down completely randomly.
Pair Corralation between Hanison Construction and AGF Management
If you would invest 14.00 in Hanison Construction Holdings on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Hanison Construction Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Hanison Construction Holdings vs. AGF Management Limited
Performance |
| Timeline |
| Hanison Construction |
| AGF Management |
Hanison Construction and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanison Construction and AGF Management
The main advantage of trading using opposite Hanison Construction and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanison Construction 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.| Hanison Construction vs. UNIDOC HEALTH P | Hanison Construction vs. Singapore Airlines Limited | Hanison Construction vs. Cardinal Health | Hanison Construction vs. CARDINAL HEALTH |
| AGF Management vs. DeVry Education Group | AGF Management vs. MARKET VECTR RETAIL | AGF Management vs. AUTO TRADER ADR | AGF Management vs. Tradeweb Markets |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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