Correlation Between Grupo Carso and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Grupo Carso 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 Grupo Carso and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and AGNC INVESTMENT, you can compare the effects of market volatilities on Grupo Carso 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 Grupo Carso with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and AGNC INVESTMENT.
Diversification Opportunities for Grupo Carso and AGNC INVESTMENT
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and AGNC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and Grupo Carso 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 Grupo Carso SAB 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 Grupo Carso i.e., Grupo Carso and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between Grupo Carso and AGNC INVESTMENT
Assuming the 90 days horizon Grupo Carso is expected to generate 1.56 times less return on investment than AGNC INVESTMENT. In addition to that, Grupo Carso is 2.03 times more volatile than AGNC INVESTMENT. It trades about 0.02 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.07 per unit of volatility. If you would invest 897.00 in AGNC INVESTMENT on October 22, 2024 and sell it today you would earn a total of 25.00 from holding AGNC INVESTMENT or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. AGNC INVESTMENT
Performance |
| Timeline |
| Grupo Carso SAB |
| AGNC INVESTMENT |
Grupo Carso and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and AGNC INVESTMENT
The main advantage of trading using opposite Grupo Carso and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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.| Grupo Carso vs. TRAINLINE PLC LS | Grupo Carso vs. Chengdu PUTIAN Telecommunications | Grupo Carso vs. COPLAND ROAD CAPITAL | Grupo Carso vs. Charter Communications |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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