Correlation Between AGF Management and DELCATH SYS

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

Diversification Opportunities for AGF Management and DELCATH SYS

0.52

Correlation Coefficient

AGF Management  DELCATH SYS

Very weak diversification

The 3 months correlation between AGF and DELCATH is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and DELCATH SYS NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELCATH SYS NEW 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 DELCATH SYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELCATH SYS NEW has no effect on the direction of AGF Management i.e., AGF Management and DELCATH SYS go up and down completely randomly.

Pair Corralation between AGF Management and DELCATH SYS

Assuming the 90 days horizon AGF Management Limited is expected to under-perform the DELCATH SYS. But the stock apears to be less risky and, when comparing its historical volatility, AGF Management Limited is 1.95 times less risky than DELCATH SYS. The stock trades about -0.07 of its potential returns per unit of risk. The DELCATH SYS NEW is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,050  in DELCATH SYS NEW on December 20, 2024 and sell it today you would earn a total of  180.00  from holding DELCATH SYS NEW or generate 17.14% return on investment over 90 days.

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

AGF Management Limited  vs.  DELCATH SYS NEW

AGF Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGF Management Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

DELCATH SYS NEW

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DELCATH SYS NEW are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DELCATH SYS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AGF Management and DELCATH SYS

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

The idea behind AGF Management Limited and DELCATH SYS NEW 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.