Correlation Between AGFiQ Market and Purpose Tactical

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

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

Diversification Opportunities for AGFiQ Market and Purpose Tactical

-0.95

Correlation Coefficient

AGFiQ Market  Purpose Tactical

Pay attention - limited upside

The 3 months correlation between AGFiQ and Purpose is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ Market Neutral and Purpose Tactical Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purpose Tactical Hedged and AGFiQ Market 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 AGFiQ Market Neutral are associated (or correlated) with Purpose Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purpose Tactical Hedged has no effect on the direction of AGFiQ Market i.e., AGFiQ Market and Purpose Tactical go up and down completely randomly.

Pair Corralation between AGFiQ Market and Purpose Tactical

Assuming the 90 days trading horizon AGFiQ Market Neutral is expected to under-perform the Purpose Tactical. In addition to that, AGFiQ Market is 2.13 times more volatile than Purpose Tactical Hedged. It trades about -0.3 of its total potential returns per unit of risk. Purpose Tactical Hedged is currently generating about 0.38 per unit of volatility. If you would invest  3,398  in Purpose Tactical Hedged on April 23, 2025 and sell it today you would earn a total of  400.00  from holding Purpose Tactical Hedged or generate 11.77% return on investment over 90 days.

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

AGFiQ Market Neutral  vs.  Purpose Tactical Hedged

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.

Purpose Tactical Hedged

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Purpose Tactical Hedged are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Purpose Tactical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AGFiQ Market and Purpose Tactical

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

The idea behind AGFiQ Market Neutral and Purpose Tactical Hedged 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.