Correlation Between AGNC INVESTMENT and GB Group
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and GB 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 AGNC INVESTMENT and GB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and GB Group plc, you can compare the effects of market volatilities on AGNC INVESTMENT and GB 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 AGNC INVESTMENT with a short position of GB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and GB Group.
Diversification Opportunities for AGNC INVESTMENT and GB Group
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AGNC and 0GB is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and GB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GB Group plc and AGNC INVESTMENT 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 AGNC INVESTMENT are associated (or correlated) with GB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GB Group plc has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and GB Group go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and GB Group
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.85 times more return on investment than GB Group. However, AGNC INVESTMENT is 1.18 times less risky than GB Group. It trades about 0.22 of its potential returns per unit of risk. GB Group plc is currently generating about -0.14 per unit of risk. If you would invest 894.00 in AGNC INVESTMENT on October 25, 2024 and sell it today you would earn a total of 43.00 from holding AGNC INVESTMENT or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. GB Group plc
Performance |
| Timeline |
| AGNC INVESTMENT |
| GB Group plc |
AGNC INVESTMENT and GB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and GB Group
The main advantage of trading using opposite AGNC INVESTMENT and GB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, GB 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 GB Group will offset losses from the drop in GB Group's long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| GB Group vs. AGNC INVESTMENT | GB Group vs. Nishi Nippon Railroad Co | GB Group vs. WisdomTree Investments | GB Group vs. Apollo Investment Corp |
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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