Correlation Between AGNC INVESTMENT and Air Liquide
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Air Liquide 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 Air Liquide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Air Liquide SA, you can compare the effects of market volatilities on AGNC INVESTMENT and Air Liquide 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 Air Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Air Liquide.
Diversification Opportunities for AGNC INVESTMENT and Air Liquide
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and Air is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Air Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Liquide SA 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 Air Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Liquide SA has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Air Liquide go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Air Liquide
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.3 times more return on investment than Air Liquide. However, AGNC INVESTMENT is 1.3 times more volatile than Air Liquide SA. It trades about 0.22 of its potential returns per unit of risk. Air Liquide SA is currently generating about 0.22 per unit of risk. If you would invest 878.00 in AGNC INVESTMENT on October 20, 2024 and sell it today you would earn a total of 44.00 from holding AGNC INVESTMENT or generate 5.01% 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. Air Liquide SA
Performance |
| Timeline |
| AGNC INVESTMENT |
| Air Liquide SA |
AGNC INVESTMENT and Air Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Air Liquide
The main advantage of trading using opposite AGNC INVESTMENT and Air Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Air Liquide 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 Air Liquide will offset losses from the drop in Air Liquide'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 |
| Air Liquide vs. Summit Materials | Air Liquide vs. Vulcan Materials | Air Liquide vs. SAN MIGUEL BREWERY | Air Liquide vs. United Breweries Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |