Correlation Between AGF Management and Brockhaus Capital
Can any of the company-specific risk be diversified away by investing in both AGF Management and Brockhaus Capital 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 AGF Management and Brockhaus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGF Management Limited and Brockhaus Capital Management, you can compare the effects of market volatilities on AGF Management and Brockhaus Capital 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 AGF Management with a short position of Brockhaus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Brockhaus Capital.
Diversification Opportunities for AGF Management and Brockhaus Capital
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGF and Brockhaus is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Brockhaus Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brockhaus Capital and AGF Management 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 AGF Management Limited are associated (or correlated) with Brockhaus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brockhaus Capital has no effect on the direction of AGF Management i.e., AGF Management and Brockhaus Capital go up and down completely randomly.
Pair Corralation between AGF Management and Brockhaus Capital
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.66 times more return on investment than Brockhaus Capital. However, AGF Management Limited is 1.51 times less risky than Brockhaus Capital. It trades about 0.02 of its potential returns per unit of risk. Brockhaus Capital Management is currently generating about -0.08 per unit of risk. If you would invest 685.00 in AGF Management Limited on September 23, 2024 and sell it today you would earn a total of 5.00 from holding AGF Management Limited or generate 0.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AGF Management Limited vs. Brockhaus Capital Management
Performance |
Timeline |
AGF Management |
Brockhaus Capital |
AGF Management and Brockhaus Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AGF Management and Brockhaus Capital
The main advantage of trading using opposite AGF Management and Brockhaus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Brockhaus Capital 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 Brockhaus Capital will offset losses from the drop in Brockhaus Capital's long position.AGF Management vs. Blackstone Group | AGF Management vs. The Bank of | AGF Management vs. Ameriprise Financial | AGF Management vs. State Street |
Brockhaus Capital vs. Blackstone Group | Brockhaus Capital vs. The Bank of | Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. State Street |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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