Correlation Between AGFiQ Market and Accelerate OneChoice

Can any of the company-specific risk be diversified away by investing in both AGFiQ Market and Accelerate OneChoice 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 Accelerate OneChoice 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 Accelerate OneChoice Alternative, you can compare the effects of market volatilities on AGFiQ Market and Accelerate OneChoice 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 Accelerate OneChoice. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFiQ Market and Accelerate OneChoice.

Diversification Opportunities for AGFiQ Market and Accelerate OneChoice

-0.86

Correlation Coefficient

AGFiQ Market  Accelerate OneChoice

Pay attention - limited upside

The 3 months correlation between AGFiQ and Accelerate is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ Market Neutral and Accelerate OneChoice Alternati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate OneChoice 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 Accelerate OneChoice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate OneChoice has no effect on the direction of AGFiQ Market i.e., AGFiQ Market and Accelerate OneChoice go up and down completely randomly.

Pair Corralation between AGFiQ Market and Accelerate OneChoice

Assuming the 90 days trading horizon AGFiQ Market Neutral is expected to under-perform the Accelerate OneChoice. In addition to that, AGFiQ Market is 2.22 times more volatile than Accelerate OneChoice Alternative. It trades about -0.14 of its total potential returns per unit of risk. Accelerate OneChoice Alternative is currently generating about 0.15 per unit of volatility. If you would invest  2,245  in Accelerate OneChoice Alternative on September 15, 2024 and sell it today you would earn a total of  80.00  from holding Accelerate OneChoice Alternative or generate 3.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

AGFiQ Market Neutral  vs.  Accelerate OneChoice Alternati

AGFiQ Market Neutral

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGFiQ Market Neutral has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Accelerate OneChoice

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accelerate OneChoice Alternative are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Accelerate OneChoice is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with AGFiQ Market and Accelerate OneChoice

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

The idea behind AGFiQ Market Neutral and Accelerate OneChoice Alternative 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.