Correlation Between AGF Management and Gamehost

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

Diversification Opportunities for AGF Management and Gamehost

0.14

Correlation Coefficient

AGF Management  Gamehost

Average diversification

The 3 months correlation between AGF and Gamehost is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of AGF Management i.e., AGF Management and Gamehost go up and down completely randomly.

Pair Corralation between AGF Management and Gamehost

Assuming the 90 days trading horizon AGF Management Limited is expected to under-perform the Gamehost. In addition to that, AGF Management is 1.92 times more volatile than Gamehost. It trades about -0.03 of its total potential returns per unit of risk. Gamehost is currently generating about 0.02 per unit of volatility. If you would invest  1,000.00  in Gamehost on December 30, 2024 and sell it today you would earn a total of  12.00  from holding Gamehost or generate 1.2% return on investment over 90 days.

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

AGF Management Limited  vs.  Gamehost

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. 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.

Gamehost

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Gamehost is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with AGF Management and Gamehost

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

The idea behind AGF Management Limited and Gamehost 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.