Correlation Between AGNC INVESTMENT and Haleon PLC
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Haleon PLC 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 Haleon PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Haleon PLC, you can compare the effects of market volatilities on AGNC INVESTMENT and Haleon PLC 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 Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Haleon PLC.
Diversification Opportunities for AGNC INVESTMENT and Haleon PLC
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGNC and Haleon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon PLC 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 Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Haleon PLC go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Haleon PLC
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.16 times more return on investment than Haleon PLC. However, AGNC INVESTMENT is 1.16 times more volatile than Haleon PLC. It trades about 0.06 of its potential returns per unit of risk. Haleon PLC is currently generating about 0.07 per unit of risk. If you would invest 702.00 in AGNC INVESTMENT on September 12, 2024 and sell it today you would earn a total of 214.00 from holding AGNC INVESTMENT or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Haleon PLC
Performance |
| Timeline |
| AGNC INVESTMENT |
| Haleon PLC |
AGNC INVESTMENT and Haleon PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Haleon PLC
The main advantage of trading using opposite AGNC INVESTMENT and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Haleon PLC 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| Haleon PLC vs. Hanison Construction Holdings | Haleon PLC vs. AGNC INVESTMENT | Haleon PLC vs. SLR Investment Corp | Haleon PLC vs. REINET INVESTMENTS SCA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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