Correlation Between FolioBeyond Rising and AGFiQ Market

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

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

Diversification Opportunities for FolioBeyond Rising and AGFiQ Market

-0.14

Correlation Coefficient

FolioBeyond Rising  AGFiQ Market

Good diversification

The 3 months correlation between FolioBeyond and AGFiQ is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding FolioBeyond Rising Rates 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 FolioBeyond Rising 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 FolioBeyond Rising Rates 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 FolioBeyond Rising i.e., FolioBeyond Rising and AGFiQ Market go up and down completely randomly.

Pair Corralation between FolioBeyond Rising and AGFiQ Market

Given the investment horizon of 90 days FolioBeyond Rising is expected to generate 9.66 times less return on investment than AGFiQ Market. But when comparing it to its historical volatility, FolioBeyond Rising Rates is 3.51 times less risky than AGFiQ Market. It trades about 0.05 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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

FolioBeyond Rising Rates  vs.  AGFiQ Market Neutral

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.

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.

Pair Trading with FolioBeyond Rising and AGFiQ Market

The main advantage of trading using opposite FolioBeyond Rising and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FolioBeyond Rising 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.

The idea behind FolioBeyond Rising Rates and AGFiQ Market Neutral 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.