Correlation Between AGF Management and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both AGF Management and FPX Nickel 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 Management and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGF Management Limited and FPX Nickel Corp, you can compare the effects of market volatilities on AGF Management and FPX Nickel 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 Management with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and FPX Nickel.
Diversification Opportunities for AGF Management and FPX Nickel
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGF and FPX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and AGF Management 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 Management Limited are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of AGF Management i.e., AGF Management and FPX Nickel go up and down completely randomly.
Pair Corralation between AGF Management and FPX Nickel
Assuming the 90 days trading horizon AGF Management is expected to generate 4.26 times less return on investment than FPX Nickel. But when comparing it to its historical volatility, AGF Management Limited is 3.31 times less risky than FPX Nickel. It trades about 0.14 of its potential returns per unit of risk. FPX Nickel Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 24.00 in FPX Nickel Corp on September 5, 2025 and sell it today you would earn a total of 17.00 from holding FPX Nickel Corp or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. FPX Nickel Corp
Performance |
| Timeline |
| AGF Management |
| FPX Nickel Corp |
AGF Management and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and FPX Nickel
The main advantage of trading using opposite AGF Management and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| AGF Management vs. Western Investment | AGF Management vs. Rogers Communications | AGF Management vs. Atrium Mortgage Investment | AGF Management vs. Omineca Mining and |
| FPX Nickel vs. TGS Esports | FPX Nickel vs. Nexoptic Technology Corp | FPX Nickel vs. CVS HEALTH CDR | FPX Nickel vs. Super Micro Computer, |
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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