Correlation Between IMGP DBi and AGFiQ Market
Can any of the company-specific risk be diversified away by investing in both IMGP DBi and AGFiQ Market 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 IMGP DBi and AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMGP DBi Managed and AGFiQ Market Neutral, you can compare the effects of market volatilities on IMGP DBi and AGFiQ Market 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 IMGP DBi with a short position of AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and AGFiQ Market.
Diversification Opportunities for IMGP DBi and AGFiQ Market
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMGP and AGFiQ is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral and IMGP DBi 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 iMGP DBi Managed are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of IMGP DBi i.e., IMGP DBi and AGFiQ Market go up and down completely randomly.
Pair Corralation between IMGP DBi and AGFiQ Market
Given the investment horizon of 90 days iMGP DBi Managed is expected to under-perform the AGFiQ Market. But the etf apears to be less risky and, when comparing its historical volatility, iMGP DBi Managed is 1.93 times less risky than AGFiQ Market. The etf trades about -0.52 of its potential returns per unit of risk. The AGFiQ Market Neutral is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 1,795 in AGFiQ Market Neutral on December 10, 2024 and sell it today you would earn a total of 290.00 from holding AGFiQ Market Neutral or generate 16.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
iMGP DBi Managed vs. AGFiQ Market Neutral
Performance |
Timeline |
iMGP DBi Managed |
AGFiQ Market Neutral |
IMGP DBi and AGFiQ Market Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IMGP DBi and AGFiQ Market
The main advantage of trading using opposite IMGP DBi and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMGP DBi position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market's long position.IMGP DBi vs. KFA Mount Lucas | IMGP DBi vs. Simplify Exchange Traded | IMGP DBi vs. Simplify Interest Rate | IMGP DBi vs. First Trust Managed |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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