Correlation Between MTI WIRELESS and AGF Management
Can any of the company-specific risk be diversified away by investing in both MTI WIRELESS 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 MTI WIRELESS and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTI WIRELESS EDGE and AGF Management Limited, you can compare the effects of market volatilities on MTI WIRELESS 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 MTI WIRELESS with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTI WIRELESS and AGF Management.
Diversification Opportunities for MTI WIRELESS and AGF Management
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MTI and AGF is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MTI WIRELESS EDGE and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and MTI WIRELESS 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 MTI WIRELESS EDGE 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 MTI WIRELESS i.e., MTI WIRELESS and AGF Management go up and down completely randomly.
Pair Corralation between MTI WIRELESS and AGF Management
Assuming the 90 days horizon MTI WIRELESS is expected to generate 3.6 times less return on investment than AGF Management. In addition to that, MTI WIRELESS is 1.46 times more volatile than AGF Management Limited. It trades about 0.05 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.26 per unit of volatility. If you would invest 516.00 in AGF Management Limited on August 28, 2024 and sell it today you would earn a total of 209.00 from holding AGF Management Limited or generate 40.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
MTI WIRELESS EDGE vs. AGF Management Limited
Performance |
| Timeline |
| MTI WIRELESS EDGE |
| AGF Management |
MTI WIRELESS and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTI WIRELESS and AGF Management
The main advantage of trading using opposite MTI WIRELESS and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTI WIRELESS 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.| MTI WIRELESS vs. Apple Inc | MTI WIRELESS vs. Apple Inc | MTI WIRELESS vs. Apple Inc | MTI WIRELESS vs. Apple Inc |
| AGF Management vs. Diamondrock Hospitality Co | AGF Management vs. Ramsay Health Care | AGF Management vs. THRACE PLASTICS | AGF Management vs. DiamondRock Hospitality |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |