Correlation Between AGF Management and Sparx Technology
Can any of the company-specific risk be diversified away by investing in both AGF Management and Sparx Technology 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 Sparx Technology 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 Sparx Technology, you can compare the effects of market volatilities on AGF Management and Sparx Technology 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 Sparx Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Sparx Technology.
Diversification Opportunities for AGF Management and Sparx Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AGF and Sparx is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Sparx Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparx Technology 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 Sparx Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparx Technology has no effect on the direction of AGF Management i.e., AGF Management and Sparx Technology go up and down completely randomly.
Pair Corralation between AGF Management and Sparx Technology
Assuming the 90 days trading horizon AGF Management is expected to generate 13.62 times less return on investment than Sparx Technology. But when comparing it to its historical volatility, AGF Management Limited is 24.72 times less risky than Sparx Technology. It trades about 0.09 of its potential returns per unit of risk. Sparx Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.50 in Sparx Technology on August 25, 2025 and sell it today you would earn a total of 3,484 from holding Sparx Technology or generate 696900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. Sparx Technology
Performance |
| Timeline |
| AGF Management |
| Sparx Technology |
AGF Management and Sparx Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and Sparx Technology
The main advantage of trading using opposite AGF Management and Sparx Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management position performs unexpectedly, Sparx Technology 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 Sparx Technology will offset losses from the drop in Sparx Technology's long position.| AGF Management vs. Bitcoin Fund Unit | AGF Management vs. Coca Cola CDR | AGF Management vs. iShares Canadian HYBrid | AGF Management vs. European Residential Real |
| Sparx Technology vs. Air Canada | Sparx Technology vs. Diversified Royalty Corp | Sparx Technology vs. Upstart Investments | Sparx Technology vs. Economic Investment Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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