Correlation Between AGF Investments and VanEck Morningstar

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

By analyzing existing cross correlation between AGF Investments and VanEck Morningstar International, you can compare the effects of market volatilities on AGF Investments and VanEck Morningstar 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 Investments with a short position of VanEck Morningstar. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Investments and VanEck Morningstar.

Diversification Opportunities for AGF Investments and VanEck Morningstar

0.39

Correlation Coefficient

AGF Investments  VanEck Morningstar

Weak diversification

The 3 months correlation between AGF and VanEck is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AGF Investments and VanEck Morningstar Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Morningstar and AGF Investments 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 Investments are associated (or correlated) with VanEck Morningstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Morningstar has no effect on the direction of AGF Investments i.e., AGF Investments and VanEck Morningstar go up and down completely randomly.

Pair Corralation between AGF Investments and VanEck Morningstar

If you would invest  2,527  in AGF Investments on October 11, 2024 and sell it today you would earn a total of  0.00  from holding AGF Investments or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

AGF Investments  vs.  VanEck Morningstar Internation

AGF Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGF Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, AGF Investments is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

VanEck Morningstar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VanEck Morningstar International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Etf's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the Etf traders.

Pair Trading with AGF Investments and VanEck Morningstar

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

The idea behind AGF Investments and VanEck Morningstar International 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..