Correlation Between Mawer Global and AGF American

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

By analyzing existing cross correlation between Mawer Global Small and AGF American Growth, you can compare the effects of market volatilities on Mawer Global and AGF American 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 Mawer Global with a short position of AGF American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Global and AGF American.

Diversification Opportunities for Mawer Global and AGF American

0.75

Correlation Coefficient

Mawer Global  AGF American

Poor diversification

The 3 months correlation between Mawer and AGF is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Small and AGF American Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF American Growth and Mawer Global 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 Mawer Global Small are associated (or correlated) with AGF American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF American Growth has no effect on the direction of Mawer Global i.e., Mawer Global and AGF American go up and down completely randomly.

Pair Corralation between Mawer Global and AGF American

Assuming the 90 days trading horizon Mawer Global is expected to generate 5.24 times less return on investment than AGF American. But when comparing it to its historical volatility, Mawer Global Small is 1.08 times less risky than AGF American. It trades about 0.13 of its potential returns per unit of risk. AGF American Growth is currently generating about 0.63 of returns per unit of risk over similar time horizon. If you would invest  7,127  in AGF American Growth on April 17, 2025 and sell it today you would earn a total of  396.00  from holding AGF American Growth or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	61.9%
Values	Daily Returns

Mawer Global Small  vs.  AGF American Growth

Mawer Global Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mawer Global Small are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unsteady basic indicators, Mawer Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

AGF American Growth

Risk-Adjusted Performance

Strong

Over the last 90 days AGF American Growth has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat sluggish basic indicators, AGF American sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mawer Global and AGF American

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

The idea behind Mawer Global Small and AGF American Growth 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.