Correlation Between IMetal Resources and AGF Management
Can any of the company-specific risk be diversified away by investing in both IMetal Resources 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 IMetal Resources and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMetal Resources and AGF Management Limited, you can compare the effects of market volatilities on IMetal Resources 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 IMetal Resources with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMetal Resources and AGF Management.
Diversification Opportunities for IMetal Resources and AGF Management
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMetal and AGF is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding iMetal Resources and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and IMetal Resources 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 iMetal Resources 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 IMetal Resources i.e., IMetal Resources and AGF Management go up and down completely randomly.
Pair Corralation between IMetal Resources and AGF Management
Assuming the 90 days horizon iMetal Resources is expected to generate 84.33 times more return on investment than AGF Management. However, IMetal Resources is 84.33 times more volatile than AGF Management Limited. It trades about 0.15 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.08 per unit of risk. If you would invest 205.00 in iMetal Resources on September 12, 2024 and sell it today you would lose (182.00) from holding iMetal Resources or give up 88.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.13% |
| Values | Daily Returns |
iMetal Resources vs. AGF Management Limited
Performance |
| Timeline |
| iMetal Resources |
| AGF Management |
IMetal Resources and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMetal Resources and AGF Management
The main advantage of trading using opposite IMetal Resources and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMetal Resources 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.| IMetal Resources vs. Firan Technology Group | IMetal Resources vs. Postmedia Network Canada | IMetal Resources vs. Constellation Software | IMetal Resources vs. Sparx Technology |
| AGF Management vs. Brompton Lifeco Split | AGF Management vs. North American Financial | AGF Management vs. Prime Dividend Corp | AGF Management vs. Financial 15 Split |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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