Correlation Between Nomad Foods and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Nomad Foods and AGNC INVESTMENT 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 Nomad Foods and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomad Foods and AGNC INVESTMENT, you can compare the effects of market volatilities on Nomad Foods and AGNC INVESTMENT 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 Nomad Foods with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomad Foods and AGNC INVESTMENT.
Diversification Opportunities for Nomad Foods and AGNC INVESTMENT
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nomad and AGNC is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nomad Foods and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and Nomad Foods 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 Nomad Foods are associated (or correlated) with AGNC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC INVESTMENT has no effect on the direction of Nomad Foods i.e., Nomad Foods and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between Nomad Foods and AGNC INVESTMENT
Assuming the 90 days trading horizon Nomad Foods is expected to under-perform the AGNC INVESTMENT. In addition to that, Nomad Foods is 1.24 times more volatile than AGNC INVESTMENT. It trades about -0.28 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.03 per unit of volatility. If you would invest 900.00 in AGNC INVESTMENT on October 12, 2024 and sell it today you would earn a total of 5.00 from holding AGNC INVESTMENT or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nomad Foods vs. AGNC INVESTMENT
Performance |
| Timeline |
| Nomad Foods |
| AGNC INVESTMENT |
Nomad Foods and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomad Foods and AGNC INVESTMENT
The main advantage of trading using opposite Nomad Foods and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomad Foods position performs unexpectedly, AGNC INVESTMENT 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 AGNC INVESTMENT will offset losses from the drop in AGNC INVESTMENT's long position.| Nomad Foods vs. Strategic Education | Nomad Foods vs. Gaztransport Technigaz SA | Nomad Foods vs. Yuexiu Transport Infrastructure | Nomad Foods vs. CHINA EDUCATION GROUP |
| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |