Correlation Between NBI Liquid and AGFiQ Market
Can any of the company-specific risk be diversified away by investing in both NBI Liquid and AGFiQ Market 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 NBI Liquid and AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NBI Liquid Alternatives and AGFiQ Market Neutral, you can compare the effects of market volatilities on NBI Liquid and AGFiQ Market 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 NBI Liquid with a short position of AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI Liquid and AGFiQ Market.
Diversification Opportunities for NBI Liquid and AGFiQ Market
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NBI and AGFiQ is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding NBI Liquid Alternatives and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral and NBI Liquid 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 NBI Liquid Alternatives are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of NBI Liquid i.e., NBI Liquid and AGFiQ Market go up and down completely randomly.
Pair Corralation between NBI Liquid and AGFiQ Market
Assuming the 90 days trading horizon NBI Liquid is expected to generate 5.32 times less return on investment than AGFiQ Market. But when comparing it to its historical volatility, NBI Liquid Alternatives is 2.73 times less risky than AGFiQ Market. It trades about 0.09 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,869 in AGFiQ Market Neutral on November 27, 2024 and sell it today you would earn a total of 99.00 from holding AGFiQ Market Neutral or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBI Liquid Alternatives vs. AGFiQ Market Neutral
Performance |
| Timeline |
| NBI Liquid Alternatives |
| AGFiQ Market Neutral |
NBI Liquid and AGFiQ Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBI Liquid and AGFiQ Market
The main advantage of trading using opposite NBI Liquid and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI Liquid position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market's long position.| NBI Liquid vs. AGFiQ Market Neutral | NBI Liquid vs. Picton Mahoney Fortified | NBI Liquid vs. Purpose Diversified Real | NBI Liquid vs. Desjardins Alt LongShort |
| AGFiQ Market vs. Desjardins Alt LongShort | AGFiQ Market vs. BMO Tactical Dividend | AGFiQ Market vs. NBI Liquid Alternatives | AGFiQ Market vs. BMO Premium Yield |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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