Correlation Between ITALIAN WINE and AGF Management
Can any of the company-specific risk be diversified away by investing in both ITALIAN WINE 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 ITALIAN WINE and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITALIAN WINE BRANDS and AGF Management Limited, you can compare the effects of market volatilities on ITALIAN WINE 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 ITALIAN WINE with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITALIAN WINE and AGF Management.
Diversification Opportunities for ITALIAN WINE and AGF Management
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ITALIAN and AGF is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ITALIAN WINE BRANDS and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and ITALIAN WINE 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 ITALIAN WINE BRANDS 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 ITALIAN WINE i.e., ITALIAN WINE and AGF Management go up and down completely randomly.
Pair Corralation between ITALIAN WINE and AGF Management
Assuming the 90 days horizon ITALIAN WINE BRANDS is expected to generate 3.03 times more return on investment than AGF Management. However, ITALIAN WINE is 3.03 times more volatile than AGF Management Limited. It trades about 0.11 of its potential returns per unit of risk. AGF Management Limited is currently generating about -0.2 per unit of risk. If you would invest 2,230 in ITALIAN WINE BRANDS on October 19, 2024 and sell it today you would earn a total of 130.00 from holding ITALIAN WINE BRANDS or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ITALIAN WINE BRANDS vs. AGF Management Limited
Performance |
| Timeline |
| ITALIAN WINE BRANDS |
| AGF Management |
ITALIAN WINE and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITALIAN WINE and AGF Management
The main advantage of trading using opposite ITALIAN WINE and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITALIAN WINE 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.| ITALIAN WINE vs. Elmos Semiconductor SE | ITALIAN WINE vs. RETAIL FOOD GROUP | ITALIAN WINE vs. Semiconductor Manufacturing International | ITALIAN WINE vs. BE Semiconductor Industries |
| AGF Management vs. ITALIAN WINE BRANDS | AGF Management vs. ETFS Coffee ETC | AGF Management vs. VIVA WINE GROUP | AGF Management vs. SIEM OFFSHORE NEW |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |