Correlation Between VanEck ETF and AGF Investments

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

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

Diversification Opportunities for VanEck ETF and AGF Investments

-0.56

Correlation Coefficient

VanEck ETF  AGF Investments

Excellent diversification

The 3 months correlation between VanEck and AGF is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and AGF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Investments and VanEck ETF 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 VanEck ETF Trust 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 VanEck ETF i.e., VanEck ETF and AGF Investments go up and down completely randomly.

Pair Corralation between VanEck ETF and AGF Investments

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 Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

VanEck ETF Trust  vs.  AGF Investments

VanEck ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VanEck ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, VanEck ETF is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with VanEck ETF and AGF Investments

The main advantage of trading using opposite VanEck ETF and AGF Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ETF 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.

The idea behind VanEck ETF Trust and AGF Investments 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.