Correlation Between AGF Management and Coeur Mining

Can any of the company-specific risk be diversified away by investing in both AGF Management and Coeur Mining 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 Coeur Mining 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 Coeur Mining, you can compare the effects of market volatilities on AGF Management and Coeur Mining 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 Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Coeur Mining.

Diversification Opportunities for AGF Management and Coeur Mining

-0.28

Correlation Coefficient

AGF Management  Coeur Mining

Very good diversification

The 3 months correlation between AGF and Coeur is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of AGF Management i.e., AGF Management and Coeur Mining go up and down completely randomly.

Pair Corralation between AGF Management and Coeur Mining

Assuming the 90 days horizon AGF Management Limited is expected to generate 1.48 times more return on investment than Coeur Mining. However, AGF Management is 1.48 times more volatile than Coeur Mining. It trades about 0.07 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.05 per unit of risk. If you would invest  381.00  in AGF Management Limited on September 2, 2024 and sell it today you would earn a total of  349.00  from holding AGF Management Limited or generate 91.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGF Management Limited  vs.  Coeur Mining

AGF Management

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AGF Management Limited are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGF Management reported solid returns over the last few months and may actually be approaching a breakup point.

Coeur Mining

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur Mining are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Coeur Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AGF Management and Coeur Mining

The main advantage of trading using opposite AGF Management and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.

The idea behind AGF Management Limited and Coeur Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.