Correlation Between AGNC INVESTMENT and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Corning Incorporated 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 Corning Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Corning Incorporated, you can compare the effects of market volatilities on AGNC INVESTMENT and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Corning Incorporated.
Diversification Opportunities for AGNC INVESTMENT and Corning Incorporated
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGNC and Corning is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Corning Incorporated go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Corning Incorporated
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.47 times less return on investment than Corning Incorporated. In addition to that, AGNC INVESTMENT is 1.2 times more volatile than Corning Incorporated. It trades about 0.2 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.35 per unit of volatility. If you would invest 4,527 in Corning Incorporated on October 24, 2024 and sell it today you would earn a total of 292.00 from holding Corning Incorporated or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Corning Incorporated
Performance |
| Timeline |
| AGNC INVESTMENT |
| Corning Incorporated |
AGNC INVESTMENT and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Corning Incorporated
The main advantage of trading using opposite AGNC INVESTMENT and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated'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 |
| Corning Incorporated vs. Aya Gold Silver | Corning Incorporated vs. Coffee Holding Co | Corning Incorporated vs. Perseus Mining Limited | Corning Incorporated vs. Endeavour Mining 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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