Correlation Between National Beverage and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both National Beverage 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 National Beverage and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and AGNC INVESTMENT, you can compare the effects of market volatilities on National Beverage 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 National Beverage with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and AGNC INVESTMENT.
Diversification Opportunities for National Beverage and AGNC INVESTMENT
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and AGNC is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and National Beverage 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 National Beverage Corp 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 National Beverage i.e., National Beverage and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between National Beverage and AGNC INVESTMENT
Assuming the 90 days horizon National Beverage Corp is expected to under-perform the AGNC INVESTMENT. In addition to that, National Beverage is 1.17 times more volatile than AGNC INVESTMENT. It trades about -0.35 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 |
National Beverage Corp vs. AGNC INVESTMENT
Performance |
| Timeline |
| National Beverage Corp |
| AGNC INVESTMENT |
National Beverage and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and AGNC INVESTMENT
The main advantage of trading using opposite National Beverage and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage 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.| National Beverage vs. BURLINGTON STORES | National Beverage vs. Calibre Mining Corp | National Beverage vs. GREENX METALS LTD | National Beverage vs. ADRIATIC METALS LS 013355 |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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