Correlation Between AGNC INVESTMENT and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Impala Platinum 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 Impala Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Impala Platinum Holdings, you can compare the effects of market volatilities on AGNC INVESTMENT and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Impala Platinum.
Diversification Opportunities for AGNC INVESTMENT and Impala Platinum
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGNC and Impala is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Impala Platinum go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Impala Platinum
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 4.05 times less return on investment than Impala Platinum. But when comparing it to its historical volatility, AGNC INVESTMENT is 1.85 times less risky than Impala Platinum. It trades about 0.12 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 455.00 in Impala Platinum Holdings on October 25, 2024 and sell it today you would earn a total of 51.00 from holding Impala Platinum Holdings or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Impala Platinum Holdings
Performance |
| Timeline |
| AGNC INVESTMENT |
| Impala Platinum Holdings |
AGNC INVESTMENT and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Impala Platinum
The main advantage of trading using opposite AGNC INVESTMENT and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
| Impala Platinum vs. RCS MediaGroup SpA | Impala Platinum vs. Dave Busters Entertainment | Impala Platinum vs. SQUIRREL MEDIA SA | Impala Platinum vs. Brockhaus Capital Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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