Correlation Between AGFiQ Market and FolioBeyond Rising

Can any of the company-specific risk be diversified away by investing in both AGFiQ Market and FolioBeyond Rising 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 AGFiQ Market and FolioBeyond Rising into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGFiQ Market Neutral and FolioBeyond Rising Rates, you can compare the effects of market volatilities on AGFiQ Market and FolioBeyond Rising 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 AGFiQ Market with a short position of FolioBeyond Rising. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFiQ Market and FolioBeyond Rising.

Diversification Opportunities for AGFiQ Market and FolioBeyond Rising

-0.14

Correlation Coefficient

AGFiQ Market  FolioBeyond Rising

Good diversification

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

Pair Corralation between AGFiQ Market and FolioBeyond Rising

Given the investment horizon of 90 days AGFiQ Market Neutral is expected to generate 3.51 times more return on investment than FolioBeyond Rising. However, AGFiQ Market is 3.51 times more volatile than FolioBeyond Rising Rates. It trades about 0.13 of its potential returns per unit of risk. FolioBeyond Rising Rates is currently generating about 0.05 per unit of risk. If you would invest  1,853  in AGFiQ Market Neutral on December 30, 2024 and sell it today you would earn a total of  211.00  from holding AGFiQ Market Neutral or generate 11.39% return on investment over 90 days.

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

AGFiQ Market Neutral  vs.  FolioBeyond Rising Rates

AGFiQ Market Neutral

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AGFiQ Market Neutral are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, AGFiQ Market may actually be approaching a critical reversion point that can send shares even higher in April 2025.

FolioBeyond Rising Rates

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FolioBeyond Rising Rates are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, FolioBeyond Rising is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with AGFiQ Market and FolioBeyond Rising

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

The idea behind AGFiQ Market Neutral and FolioBeyond Rising Rates 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.