Correlation Between AGNC INVESTMENT and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and CITY OFFICE 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 CITY OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and CITY OFFICE REIT, you can compare the effects of market volatilities on AGNC INVESTMENT and CITY OFFICE 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 CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and CITY OFFICE.
Diversification Opportunities for AGNC INVESTMENT and CITY OFFICE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGNC and CITY is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT 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 CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and CITY OFFICE go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and CITY OFFICE
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.64 times more return on investment than CITY OFFICE. However, AGNC INVESTMENT is 1.57 times less risky than CITY OFFICE. It trades about 0.2 of its potential returns per unit of risk. CITY OFFICE REIT is currently generating about -0.06 per unit of risk. If you would invest 889.00 in AGNC INVESTMENT on October 23, 2024 and sell it today you would earn a total of 38.00 from holding AGNC INVESTMENT or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
AGNC INVESTMENT vs. CITY OFFICE REIT
Performance |
| Timeline |
| AGNC INVESTMENT |
| CITY OFFICE REIT |
AGNC INVESTMENT and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and CITY OFFICE
The main advantage of trading using opposite AGNC INVESTMENT and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, CITY OFFICE 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.| AGNC INVESTMENT vs. RCI Hospitality Holdings | AGNC INVESTMENT vs. SENECA FOODS A | AGNC INVESTMENT vs. PURE FOODS TASMANIA | AGNC INVESTMENT vs. United Natural Foods |
| CITY OFFICE vs. ALERION CLEANPOWER | CITY OFFICE vs. Carnegie Clean Energy | CITY OFFICE vs. ADRIATIC METALS LS 013355 | CITY OFFICE vs. Playtech plc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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