Correlation Between NVIDIA CDR and AGF Management
Can any of the company-specific risk be diversified away by investing in both NVIDIA CDR 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 NVIDIA CDR and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA CDR and AGF Management Limited, you can compare the effects of market volatilities on NVIDIA CDR 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 NVIDIA CDR with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA CDR and AGF Management.
Diversification Opportunities for NVIDIA CDR and AGF Management
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NVIDIA and AGF is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA CDR and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and NVIDIA CDR 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 NVIDIA CDR 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 NVIDIA CDR i.e., NVIDIA CDR and AGF Management go up and down completely randomly.
Pair Corralation between NVIDIA CDR and AGF Management
Assuming the 90 days trading horizon NVIDIA CDR is expected to under-perform the AGF Management. In addition to that, NVIDIA CDR is 1.42 times more volatile than AGF Management Limited. It trades about -0.07 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.18 per unit of volatility. If you would invest 1,038 in AGF Management Limited on August 30, 2024 and sell it today you would earn a total of 71.00 from holding AGF Management Limited or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NVIDIA CDR vs. AGF Management Limited
Performance |
| Timeline |
| NVIDIA CDR |
| AGF Management |
NVIDIA CDR and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA CDR and AGF Management
The main advantage of trading using opposite NVIDIA CDR and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA CDR 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.| NVIDIA CDR vs. Goodfood Market Corp | NVIDIA CDR vs. Precision Drilling | NVIDIA CDR vs. Storage Vault Canada | NVIDIA CDR vs. A W FOOD |
| AGF Management vs. IGM Financial | AGF Management vs. CI Financial Corp | AGF Management vs. iA Financial | AGF Management vs. Transcontinental |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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