Correlation Between AGNC INVESTMENT and ENDESA ADR/
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and ENDESA ADR/ 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 ENDESA ADR/ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and ENDESA ADR 12, you can compare the effects of market volatilities on AGNC INVESTMENT and ENDESA ADR/ 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 ENDESA ADR/. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and ENDESA ADR/.
Diversification Opportunities for AGNC INVESTMENT and ENDESA ADR/
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGNC and ENDESA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and ENDESA ADR 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENDESA ADR 12 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 ENDESA ADR/. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENDESA ADR 12 has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and ENDESA ADR/ go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and ENDESA ADR/
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.81 times more return on investment than ENDESA ADR/. However, AGNC INVESTMENT is 1.23 times less risky than ENDESA ADR/. It trades about 0.12 of its potential returns per unit of risk. ENDESA ADR 12 is currently generating about -0.14 per unit of risk. If you would invest 900.00 in AGNC INVESTMENT on October 9, 2024 and sell it today you would earn a total of 18.00 from holding AGNC INVESTMENT or generate 2.0% 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. ENDESA ADR 12
Performance |
| Timeline |
| AGNC INVESTMENT |
| ENDESA ADR 12 |
AGNC INVESTMENT and ENDESA ADR/ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and ENDESA ADR/
The main advantage of trading using opposite AGNC INVESTMENT and ENDESA ADR/ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, ENDESA ADR/ 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 ENDESA ADR/ will offset losses from the drop in ENDESA ADR/'s long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| ENDESA ADR/ vs. Cogent Communications Holdings | ENDESA ADR/ vs. Casio Computer CoLtd | ENDESA ADR/ vs. GMO Internet | ENDESA ADR/ vs. IMPERIAL TOBACCO |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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