Correlation Between MOBILE FACTORY and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY 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 MOBILE FACTORY and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and AGNC INVESTMENT, you can compare the effects of market volatilities on MOBILE FACTORY 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 MOBILE FACTORY with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and AGNC INVESTMENT.
Diversification Opportunities for MOBILE FACTORY and AGNC INVESTMENT
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOBILE and AGNC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and MOBILE FACTORY 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 MOBILE FACTORY INC 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 MOBILE FACTORY i.e., MOBILE FACTORY and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and AGNC INVESTMENT
Assuming the 90 days horizon MOBILE FACTORY is expected to generate 1.49 times less return on investment than AGNC INVESTMENT. In addition to that, MOBILE FACTORY is 1.32 times more volatile than AGNC INVESTMENT. It trades about 0.12 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.24 per unit of volatility. If you would invest 900.00 in AGNC INVESTMENT on November 2, 2024 and sell it today you would earn a total of 62.00 from holding AGNC INVESTMENT or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. AGNC INVESTMENT
Performance |
| Timeline |
| MOBILE FACTORY INC |
| AGNC INVESTMENT |
MOBILE FACTORY and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and AGNC INVESTMENT
The main advantage of trading using opposite MOBILE FACTORY and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY 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.| MOBILE FACTORY vs. BOSTON BEER A | MOBILE FACTORY vs. Corsair Gaming | MOBILE FACTORY vs. Norwegian Air Shuttle | MOBILE FACTORY vs. Wizz Air Holdings |
| AGNC INVESTMENT vs. OURGAME INTHOLDL 00005 | AGNC INVESTMENT vs. Nok Airlines PCL | AGNC INVESTMENT vs. GigaMedia | AGNC INVESTMENT vs. TROPHY GAMES DEV |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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