Correlation Between AGNC INVESTMENT and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and ADRIATIC METALS 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 ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on AGNC INVESTMENT and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and ADRIATIC METALS.
Diversification Opportunities for AGNC INVESTMENT and ADRIATIC METALS
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGNC and ADRIATIC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and ADRIATIC METALS
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.85 times less return on investment than ADRIATIC METALS. But when comparing it to its historical volatility, AGNC INVESTMENT is 1.94 times less risky than ADRIATIC METALS. It trades about 0.16 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 232.00 in ADRIATIC METALS LS 013355 on October 21, 2024 and sell it today you would earn a total of 14.00 from holding ADRIATIC METALS LS 013355 or generate 6.03% 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. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| AGNC INVESTMENT |
| ADRIATIC METALS LS |
AGNC INVESTMENT and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and ADRIATIC METALS
The main advantage of trading using opposite AGNC INVESTMENT and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| AGNC INVESTMENT vs. CompuGroup Medical SE | AGNC INVESTMENT vs. IMAGIN MEDICAL INC | AGNC INVESTMENT vs. Thai Beverage Public | AGNC INVESTMENT vs. SENECA FOODS A |
| ADRIATIC METALS vs. betterU Education Corp | ADRIATIC METALS vs. EMBARK EDUCATION LTD | ADRIATIC METALS vs. G8 EDUCATION | ADRIATIC METALS vs. IDP EDUCATION 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |