Correlation Between VanEck ETF and AGF Investments
Can any of the company-specific risk be diversified away by investing in both VanEck ETF and AGF Investments 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 VanEck ETF and AGF Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck ETF Trust and AGF Investments, you can compare the effects of market volatilities on VanEck ETF and AGF Investments 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 VanEck ETF with a short position of AGF Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ETF and AGF Investments.
Diversification Opportunities for VanEck ETF and AGF Investments
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and AGF is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and AGF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Investments and VanEck ETF 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 VanEck ETF Trust are associated (or correlated) with AGF Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Investments has no effect on the direction of VanEck ETF i.e., VanEck ETF and AGF Investments go up and down completely randomly.
Pair Corralation between VanEck ETF and AGF Investments
If you would invest 2,876 in VanEck ETF Trust on August 30, 2024 and sell it today you would earn a total of 101.00 from holding VanEck ETF Trust or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
VanEck ETF Trust vs. AGF Investments
Performance |
| Timeline |
| VanEck ETF Trust |
| AGF Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck ETF and AGF Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck ETF and AGF Investments
The main advantage of trading using opposite VanEck ETF and AGF Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ETF position performs unexpectedly, AGF Investments 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 Investments will offset losses from the drop in AGF Investments' long position.| VanEck ETF vs. JPMorgan BetaBuilders International | VanEck ETF vs. JPMorgan Core Plus | VanEck ETF vs. JPMorgan BetaBuilders Canada | VanEck ETF vs. JPMorgan Emerging Markets |
| AGF Investments vs. ProShares DJ Brookfield | AGF Investments vs. ClearBridge Sustainable Infrastructure | AGF Investments vs. FlexShares STOXX Global | AGF Investments vs. SPDR SP Global |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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