Correlation Between Terreno Resources and AGF Management
Can any of the company-specific risk be diversified away by investing in both Terreno 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 Terreno 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 Terreno Resources Corp and AGF Management Limited, you can compare the effects of market volatilities on Terreno 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 Terreno Resources with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terreno Resources and AGF Management.
Diversification Opportunities for Terreno Resources and AGF Management
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Terreno and AGF is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Terreno 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 Terreno 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 Terreno 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 Terreno Resources i.e., Terreno Resources and AGF Management go up and down completely randomly.
Pair Corralation between Terreno Resources and AGF Management
If you would invest 1,068 in AGF Management Limited on September 4, 2024 and sell it today you would earn a total of 34.00 from holding AGF Management Limited or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Terreno Resources Corp vs. AGF Management Limited
Performance |
| Timeline |
| Terreno Resources Corp |
| AGF Management |
Terreno Resources and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terreno Resources and AGF Management
The main advantage of trading using opposite Terreno Resources and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terreno 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.| Terreno Resources vs. AGF Management Limited | Terreno Resources vs. MAG Silver Corp | Terreno Resources vs. Vizsla Silver Corp | Terreno Resources vs. Brookfield Asset Management |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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