Correlation Between Lycos Energy and AGF Management
Can any of the company-specific risk be diversified away by investing in both Lycos Energy 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 Lycos Energy and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lycos Energy and AGF Management Limited, you can compare the effects of market volatilities on Lycos Energy 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 Lycos Energy with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lycos Energy and AGF Management.
Diversification Opportunities for Lycos Energy and AGF Management
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lycos and AGF is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lycos Energy and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Lycos Energy 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 Lycos Energy 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 Lycos Energy i.e., Lycos Energy and AGF Management go up and down completely randomly.
Pair Corralation between Lycos Energy and AGF Management
Assuming the 90 days horizon Lycos Energy is expected to under-perform the AGF Management. In addition to that, Lycos Energy is 1.66 times more volatile than AGF Management Limited. It trades about -0.03 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.1 per unit of volatility. If you would invest 786.00 in AGF Management Limited on November 1, 2024 and sell it today you would earn a total of 337.00 from holding AGF Management Limited or generate 42.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lycos Energy vs. AGF Management Limited
Performance |
| Timeline |
| Lycos Energy |
| AGF Management |
Lycos Energy and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lycos Energy and AGF Management
The main advantage of trading using opposite Lycos Energy and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lycos Energy 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.| Lycos Energy vs. AGF Management Limited | Lycos Energy vs. Highwood Asset Management | Lycos Energy vs. Verizon Communications CDR | Lycos Energy vs. NextSource Materials |
| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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