Correlation Between AGNC INVESTMENT and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Origin Agritech 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 Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Origin Agritech, you can compare the effects of market volatilities on AGNC INVESTMENT and Origin Agritech 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 Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Origin Agritech.
Diversification Opportunities for AGNC INVESTMENT and Origin Agritech
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGNC and Origin is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech 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 Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Origin Agritech go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Origin Agritech
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.25 times more return on investment than Origin Agritech. However, AGNC INVESTMENT is 3.96 times less risky than Origin Agritech. It trades about 0.05 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.01 per unit of risk. If you would invest 701.00 in AGNC INVESTMENT on October 29, 2024 and sell it today you would earn a total of 226.00 from holding AGNC INVESTMENT or generate 32.24% 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. Origin Agritech
Performance |
| Timeline |
| AGNC INVESTMENT |
| Origin Agritech |
AGNC INVESTMENT and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Origin Agritech
The main advantage of trading using opposite AGNC INVESTMENT and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| AGNC INVESTMENT vs. Sixt Leasing SE | AGNC INVESTMENT vs. Guangdong Investment Limited | AGNC INVESTMENT vs. New Residential Investment | AGNC INVESTMENT vs. FUYO GENERAL LEASE |
| Origin Agritech vs. De Grey Mining | Origin Agritech vs. MAGNUM MINING EXP | Origin Agritech vs. DAIRY FARM INTL | Origin Agritech vs. GRIFFIN MINING 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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