Correlation Between Microsoft and AGF Investments
Can any of the company-specific risk be diversified away by investing in both Microsoft and AGF Investments 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 Microsoft and AGF Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and AGF Investments, you can compare the effects of market volatilities on Microsoft and AGF Investments 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 Microsoft with a short position of AGF Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and AGF Investments.
Diversification Opportunities for Microsoft and AGF Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and AGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and AGF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Investments and Microsoft 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 Microsoft are associated (or correlated) with AGF Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Investments has no effect on the direction of Microsoft i.e., Microsoft and AGF Investments go up and down completely randomly.
Pair Corralation between Microsoft and AGF Investments
If you would invest 0.00 in AGF Investments on December 28, 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 | Flat |
Strength | Insignificant |
Accuracy | 1.67% |
Values | Daily Returns |
Microsoft vs. AGF Investments
Performance |
Timeline |
Microsoft |
AGF Investments |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Microsoft and AGF Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and AGF Investments
The main advantage of trading using opposite Microsoft and AGF Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, AGF Investments 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 Investments will offset losses from the drop in AGF Investments' long position.Microsoft vs. Palo Alto Networks | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Zscaler |
AGF Investments vs. ProShares DJ Brookfield | AGF Investments vs. ClearBridge Sustainable Infrastructure | AGF Investments vs. FlexShares STOXX Global | AGF Investments vs. SPDR SP Global |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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