Correlation Between Blackrock Muniholdings and AGF Management
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings 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 Blackrock Muniholdings and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Ny and AGF Management Limited, you can compare the effects of market volatilities on Blackrock Muniholdings 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 Blackrock Muniholdings with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and AGF Management.
Diversification Opportunities for Blackrock Muniholdings and AGF Management
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and AGF is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Blackrock Muniholdings 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 Blackrock Muniholdings Ny 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 Blackrock Muniholdings i.e., Blackrock Muniholdings and AGF Management go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and AGF Management
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 2.32 times less return on investment than AGF Management. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 2.55 times less risky than AGF Management. It trades about 0.2 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 747.00 in AGF Management Limited on August 31, 2024 and sell it today you would earn a total of 47.00 from holding AGF Management Limited or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. AGF Management Limited
Performance |
| Timeline |
| Blackrock Muniholdings |
| AGF Management |
Blackrock Muniholdings and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and AGF Management
The main advantage of trading using opposite Blackrock Muniholdings and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings 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.| Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Eaton Vance Municipal | Blackrock Muniholdings vs. DTF Tax Free | Blackrock Muniholdings vs. HUMANA INC |
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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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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