Correlation Between AGFiQ and Zillow Group

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

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

Diversification Opportunities for AGFiQ and Zillow Group

0.0

Correlation Coefficient

AGFiQ  Zillow Group

Pay attention - limited upside

The 3 months correlation between AGFiQ and Zillow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ and Zillow Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zillow Group Class and AGFiQ 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 are associated (or correlated) with Zillow Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zillow Group Class has no effect on the direction of AGFiQ i.e., AGFiQ and Zillow Group go up and down completely randomly.

Pair Corralation between AGFiQ and Zillow Group

If you would invest (100.00) in AGFiQ on February 5, 2024 and sell it today you would earn a total of  100.00  from holding AGFiQ or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AGFiQ  vs.  Zillow Group Class

AGFiQ

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGFiQ has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AGFiQ is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Zillow Group Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zillow Group Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with AGFiQ and Zillow Group

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

The idea behind AGFiQ and Zillow Group Class 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.