Correlation Between NBI Liquid and AGFiQ Market

Can any of the company-specific risk be diversified away by investing in both NBI Liquid and AGFiQ Market 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 NBI Liquid and AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NBI Liquid Alternatives and AGFiQ Market Neutral, you can compare the effects of market volatilities on NBI Liquid and AGFiQ Market 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 NBI Liquid with a short position of AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI Liquid and AGFiQ Market.

Diversification Opportunities for NBI Liquid and AGFiQ Market

0.69

Correlation Coefficient

NBI Liquid  AGFiQ Market

Poor diversification

The 3 months correlation between NBI and AGFiQ is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding NBI Liquid Alternatives and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral and NBI Liquid 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 NBI Liquid Alternatives are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of NBI Liquid i.e., NBI Liquid and AGFiQ Market go up and down completely randomly.

Pair Corralation between NBI Liquid and AGFiQ Market

Assuming the 90 days trading horizon NBI Liquid Alternatives is expected to generate 0.59 times more return on investment than AGFiQ Market. However, NBI Liquid Alternatives is 1.68 times less risky than AGFiQ Market. It trades about -0.05 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about -0.28 per unit of risk. If you would invest  2,185  in NBI Liquid Alternatives on April 24, 2025 and sell it today you would lose (41.00) from holding NBI Liquid Alternatives or give up 1.88% of portfolio value over 90 days.

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

NBI Liquid Alternatives  vs.  AGFiQ Market Neutral

NBI Liquid Alternatives

Risk-Adjusted Performance

Very Weak

Over the last 90 days NBI Liquid Alternatives has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, NBI Liquid is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

AGFiQ Market Neutral

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGFiQ Market Neutral has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with NBI Liquid and AGFiQ Market

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

The idea behind NBI Liquid Alternatives and AGFiQ Market Neutral 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.