Correlation Between AGNC INVESTMENT and PT Jasa
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and PT Jasa 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 PT Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and PT Jasa Marga, you can compare the effects of market volatilities on AGNC INVESTMENT and PT Jasa 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 PT Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and PT Jasa.
Diversification Opportunities for AGNC INVESTMENT and PT Jasa
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and 0JM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and PT Jasa Marga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jasa Marga 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 PT Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jasa Marga has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and PT Jasa go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and PT Jasa
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 3.18 times less return on investment than PT Jasa. But when comparing it to its historical volatility, AGNC INVESTMENT is 4.33 times less risky than PT Jasa. It trades about 0.03 of its potential returns per unit of risk. PT Jasa Marga is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 25.00 in PT Jasa Marga on October 12, 2024 and sell it today you would earn a total of 0.00 from holding PT Jasa Marga or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. PT Jasa Marga
Performance |
| Timeline |
| AGNC INVESTMENT |
| PT Jasa Marga |
AGNC INVESTMENT and PT Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and PT Jasa
The main advantage of trading using opposite AGNC INVESTMENT and PT Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, PT Jasa 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 PT Jasa will offset losses from the drop in PT Jasa's long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| PT Jasa vs. New Residential Investment | PT Jasa vs. AGNC INVESTMENT | PT Jasa vs. Apollo Investment Corp | PT Jasa vs. CHRYSALIS INVESTMENTS LTD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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