Correlation Between AGNC INVESTMENT and Dollarama
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Dollarama 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 Dollarama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Dollarama, you can compare the effects of market volatilities on AGNC INVESTMENT and Dollarama 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 Dollarama. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Dollarama.
Diversification Opportunities for AGNC INVESTMENT and Dollarama
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and Dollarama is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Dollarama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollarama 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 Dollarama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollarama has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Dollarama go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Dollarama
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.94 times less return on investment than Dollarama. In addition to that, AGNC INVESTMENT is 1.2 times more volatile than Dollarama. It trades about 0.04 of its total potential returns per unit of risk. Dollarama is currently generating about 0.09 per unit of volatility. If you would invest 5,451 in Dollarama on September 14, 2024 and sell it today you would earn a total of 4,045 from holding Dollarama or generate 74.21% 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. Dollarama
Performance |
| Timeline |
| AGNC INVESTMENT |
| Dollarama |
AGNC INVESTMENT and Dollarama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Dollarama
The main advantage of trading using opposite AGNC INVESTMENT and Dollarama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Dollarama 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 Dollarama will offset losses from the drop in Dollarama's long position.| AGNC INVESTMENT vs. PennyMac Mortgage Investment | AGNC INVESTMENT vs. PLAYSTUDIOS A DL 0001 | AGNC INVESTMENT vs. Hollywood Bowl Group | AGNC INVESTMENT vs. CDL INVESTMENT |
| Dollarama vs. AGNC INVESTMENT | Dollarama vs. GEAR4MUSIC LS 10 | Dollarama vs. HK Electric Investments | Dollarama vs. NORTHEAST UTILITIES |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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