Correlation Between Blackhawk Growth and AGF Management

Can any of the company-specific risk be diversified away by investing in both Blackhawk Growth and AGF Management 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 Blackhawk Growth and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackhawk Growth Corp and AGF Management Limited, you can compare the effects of market volatilities on Blackhawk Growth and AGF Management 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 Blackhawk Growth with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackhawk Growth and AGF Management.

Diversification Opportunities for Blackhawk Growth and AGF Management

-0.64

Correlation Coefficient

Blackhawk Growth  AGF Management

Excellent diversification

The 3 months correlation between Blackhawk and AGF is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Growth Corp and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and Blackhawk Growth 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 Blackhawk Growth Corp are associated (or correlated) with AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of Blackhawk Growth i.e., Blackhawk Growth and AGF Management go up and down completely randomly.

Pair Corralation between Blackhawk Growth and AGF Management

Assuming the 90 days horizon Blackhawk Growth Corp is expected to under-perform the AGF Management. In addition to that, Blackhawk Growth is 5.42 times more volatile than AGF Management Limited. It trades about -0.13 of its total potential returns per unit of risk. AGF Management Limited is currently generating about 0.25 per unit of volatility. If you would invest  582.00  in AGF Management Limited on August 31, 2024 and sell it today you would earn a total of  212.00  from holding AGF Management Limited or generate 36.43% return on investment over 90 days.

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

Blackhawk Growth Corp  vs.  AGF Management Limited

Blackhawk Growth Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackhawk Growth Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AGF Management

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AGF Management Limited are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, AGF Management reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackhawk Growth and AGF Management

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

The idea behind Blackhawk Growth Corp and AGF Management Limited 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.