Correlation Between AGNC INVESTMENT and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and REGAL ASIAN 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 REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on AGNC INVESTMENT and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and REGAL ASIAN.
Diversification Opportunities for AGNC INVESTMENT and REGAL ASIAN
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and REGAL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and REGAL ASIAN go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and REGAL ASIAN
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.0 times more return on investment than REGAL ASIAN. However, AGNC INVESTMENT is 1.0 times more volatile than REGAL ASIAN INVESTMENTS. It trades about 0.06 of its potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.05 per unit of risk. If you would invest 702.00 in AGNC INVESTMENT on September 12, 2024 and sell it today you would earn a total of 214.00 from holding AGNC INVESTMENT or generate 30.48% 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. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| AGNC INVESTMENT |
| REGAL ASIAN INVESTMENTS |
AGNC INVESTMENT and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and REGAL ASIAN
The main advantage of trading using opposite AGNC INVESTMENT and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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