Correlation Between Mammoth Resources and AGF Management
Can any of the company-specific risk be diversified away by investing in both Mammoth Resources 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 Mammoth Resources and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mammoth Resources Corp and AGF Management Limited, you can compare the effects of market volatilities on Mammoth Resources 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 Mammoth Resources with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mammoth Resources and AGF Management.
Diversification Opportunities for Mammoth Resources and AGF Management
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mammoth and AGF is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mammoth Resources Corp and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Mammoth Resources 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 Mammoth Resources Corp 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 Mammoth Resources i.e., Mammoth Resources and AGF Management go up and down completely randomly.
Pair Corralation between Mammoth Resources and AGF Management
Assuming the 90 days horizon Mammoth Resources Corp is expected to generate 4.67 times more return on investment than AGF Management. However, Mammoth Resources is 4.67 times more volatile than AGF Management Limited. It trades about 0.03 of its potential returns per unit of risk. AGF Management Limited is currently generating about -0.01 per unit of risk. If you would invest 2.50 in Mammoth Resources Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Mammoth Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mammoth Resources Corp vs. AGF Management Limited
Performance |
| Timeline |
| Mammoth Resources Corp |
| AGF Management |
Mammoth Resources and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mammoth Resources and AGF Management
The main advantage of trading using opposite Mammoth Resources and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mammoth Resources 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.| Mammoth Resources vs. Income Financial Trust | Mammoth Resources vs. Fairfax Financial Holdings | Mammoth Resources vs. Western Investment | Mammoth Resources vs. CI Financial Corp |
| AGF Management vs. Berkshire Hathaway CDR | AGF Management vs. E L Financial Corp | AGF Management vs. E L Financial 3 | AGF Management vs. Molson Coors Canada |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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