Correlation Between AGF Management and Maple Leaf

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

Diversification Opportunities for AGF Management and Maple Leaf

0.93

Correlation Coefficient

AGF Management  Maple Leaf

Almost no diversification

The 3 months correlation between AGF and Maple is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of AGF Management i.e., AGF Management and Maple Leaf go up and down completely randomly.

Pair Corralation between AGF Management and Maple Leaf

Assuming the 90 days trading horizon AGF Management Limited is expected to generate 1.55 times more return on investment than Maple Leaf. However, AGF Management is 1.55 times more volatile than Maple Leaf Foods. It trades about 0.31 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.3 per unit of risk. If you would invest  895.00  in AGF Management Limited on April 21, 2025 and sell it today you would earn a total of  375.00  from holding AGF Management Limited or generate 41.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

AGF Management Limited  vs.  Maple Leaf Foods

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 24 (%) 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.

Maple Leaf Foods

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Leaf Foods are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Maple Leaf displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AGF Management and Maple Leaf

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

The idea behind AGF Management Limited and Maple Leaf Foods 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.