Correlation Between AGNC INVESTMENT and Hologic
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Hologic 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 Hologic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Hologic, you can compare the effects of market volatilities on AGNC INVESTMENT and Hologic 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 Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Hologic.
Diversification Opportunities for AGNC INVESTMENT and Hologic
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGNC and Hologic is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic 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 Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Hologic go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Hologic
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.02 times more return on investment than Hologic. However, AGNC INVESTMENT is 1.02 times more volatile than Hologic. It trades about 0.23 of its potential returns per unit of risk. Hologic is currently generating about -0.1 per unit of risk. If you would invest 907.00 in AGNC INVESTMENT on November 7, 2024 and sell it today you would earn a total of 59.00 from holding AGNC INVESTMENT or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Hologic
Performance |
| Timeline |
| AGNC INVESTMENT |
| Hologic |
AGNC INVESTMENT and Hologic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Hologic
The main advantage of trading using opposite AGNC INVESTMENT and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.| AGNC INVESTMENT vs. Elmos Semiconductor SE | AGNC INVESTMENT vs. PT Steel Pipe | AGNC INVESTMENT vs. Lattice Semiconductor | AGNC INVESTMENT vs. Daido Steel Co |
| Hologic vs. UNIQA INSURANCE GR | Hologic vs. TITAN MACHINERY | Hologic vs. Sterling Construction | Hologic vs. CHIBA BANK |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |