Correlation Between AGF Management and Atrium Mortgage

Can any of the company-specific risk be diversified away by investing in both AGF Management and Atrium Mortgage 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 Atrium Mortgage 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 Atrium Mortgage Investment, you can compare the effects of market volatilities on AGF Management and Atrium Mortgage 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 Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and Atrium Mortgage.

Diversification Opportunities for AGF Management and Atrium Mortgage

0.92

Correlation Coefficient

AGF Management  Atrium Mortgage

Almost no diversification

The 3 months correlation between AGF and Atrium is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Atrium Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Mortgage Inve 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 Atrium Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Mortgage Inve has no effect on the direction of AGF Management i.e., AGF Management and Atrium Mortgage go up and down completely randomly.

Pair Corralation between AGF Management and Atrium Mortgage

Assuming the 90 days trading horizon AGF Management Limited is expected to generate 2.37 times more return on investment than Atrium Mortgage. However, AGF Management is 2.37 times more volatile than Atrium Mortgage Investment. It trades about 0.27 of its potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.19 per unit of risk. If you would invest  926.00  in AGF Management Limited on April 22, 2025 and sell it today you would earn a total of  317.00  from holding AGF Management Limited or generate 34.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

AGF Management Limited  vs.  Atrium Mortgage Investment

AGF Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AGF Management Limited are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, AGF Management unveiled solid returns over the last few months and may actually be approaching a breakup point.

Atrium Mortgage Inve

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atrium Mortgage Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Atrium Mortgage may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AGF Management and Atrium Mortgage

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

The idea behind AGF Management Limited and Atrium Mortgage Investment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.