Correlation Between AGF Management and Enbridge H

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

Diversification Opportunities for AGF Management and Enbridge H

0.0

Correlation Coefficient

AGF Management  Enbridge H

Pay attention - limited upside

The 3 months correlation between AGF and Enbridge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Enbridge H Cum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge H Cum 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 Enbridge H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge H Cum has no effect on the direction of AGF Management i.e., AGF Management and Enbridge H go up and down completely randomly.

Pair Corralation between AGF Management and Enbridge H

If you would invest  767.00  in AGF Management Limited on October 21, 2024 and sell it today you would earn a total of  301.00  from holding AGF Management Limited or generate 39.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

AGF Management Limited  vs.  Enbridge H Cum

AGF Management

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AGF Management Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AGF Management is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Enbridge H Cum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enbridge H Cum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Enbridge H is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AGF Management and Enbridge H

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

The idea behind AGF Management Limited and Enbridge H Cum 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.