Correlation Between AGNC INVESTMENT and Apple
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Apple Inc, you can compare the effects of market volatilities on AGNC INVESTMENT and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Apple.
Diversification Opportunities for AGNC INVESTMENT and Apple
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGNC and Apple is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Apple go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Apple
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 5.54 times less return on investment than Apple. In addition to that, AGNC INVESTMENT is 1.03 times more volatile than Apple Inc. It trades about 0.1 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.6 per unit of volatility. If you would invest 20,880 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,835 from holding Apple Inc or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Apple Inc
Performance |
| Timeline |
| AGNC INVESTMENT |
| Apple Inc |
AGNC INVESTMENT and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Apple
The main advantage of trading using opposite AGNC INVESTMENT and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| Apple vs. ON SEMICONDUCTOR | Apple vs. Burlington Stores | Apple vs. National Retail Properties | Apple vs. Goosehead Insurance |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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