Correlation Between Unity Software and AGF Management
Can any of the company-specific risk be diversified away by investing in both Unity Software 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 Unity Software and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unity Software and AGF Management Limited, you can compare the effects of market volatilities on Unity Software 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 Unity Software with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Software and AGF Management.
Diversification Opportunities for Unity Software and AGF Management
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Unity and AGF is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Unity Software 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 Unity Software 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 Unity Software i.e., Unity Software and AGF Management go up and down completely randomly.
Pair Corralation between Unity Software and AGF Management
Assuming the 90 days horizon Unity Software is expected to under-perform the AGF Management. In addition to that, Unity Software is 3.43 times more volatile than AGF Management Limited. It trades about -0.16 of its total potential returns per unit of risk. AGF Management Limited is currently generating about -0.09 per unit of volatility. If you would invest 708.00 in AGF Management Limited on October 12, 2024 and sell it today you would lose (13.00) from holding AGF Management Limited or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unity Software vs. AGF Management Limited
Performance |
| Timeline |
| Unity Software |
| AGF Management |
Unity Software and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unity Software and AGF Management
The main advantage of trading using opposite Unity Software and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Software 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.| Unity Software vs. CHINA EDUCATION GROUP | Unity Software vs. Live Nation Entertainment | Unity Software vs. Xinhua Winshare Publishing | Unity Software vs. Flutter Entertainment PLC |
| AGF Management vs. Yuexiu Transport Infrastructure | AGF Management vs. TITANIUM TRANSPORTGROUP | AGF Management vs. USWE SPORTS AB | AGF Management vs. Fukuyama Transporting Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |