Correlation Between AGNC INVESTMENT and KRONOS WORLDWIDE
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and KRONOS WORLDWIDE 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 KRONOS WORLDWIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and KRONOS WORLDWIDE, you can compare the effects of market volatilities on AGNC INVESTMENT and KRONOS WORLDWIDE 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 KRONOS WORLDWIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and KRONOS WORLDWIDE.
Diversification Opportunities for AGNC INVESTMENT and KRONOS WORLDWIDE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGNC and KRONOS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and KRONOS WORLDWIDE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRONOS WORLDWIDE 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 KRONOS WORLDWIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRONOS WORLDWIDE has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and KRONOS WORLDWIDE go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and KRONOS WORLDWIDE
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.58 times more return on investment than KRONOS WORLDWIDE. However, AGNC INVESTMENT is 1.71 times less risky than KRONOS WORLDWIDE. It trades about 0.13 of its potential returns per unit of risk. KRONOS WORLDWIDE is currently generating about -0.25 per unit of risk. If you would invest 951.00 in AGNC INVESTMENT on December 4, 2024 and sell it today you would earn a total of 25.00 from holding AGNC INVESTMENT or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AGNC INVESTMENT vs. KRONOS WORLDWIDE
Performance |
| Timeline |
| AGNC INVESTMENT |
| KRONOS WORLDWIDE |
AGNC INVESTMENT and KRONOS WORLDWIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and KRONOS WORLDWIDE
The main advantage of trading using opposite AGNC INVESTMENT and KRONOS WORLDWIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, KRONOS WORLDWIDE 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 KRONOS WORLDWIDE will offset losses from the drop in KRONOS WORLDWIDE's long position.| AGNC INVESTMENT vs. NTT DATA | AGNC INVESTMENT vs. Data3 Limited | AGNC INVESTMENT vs. Information Services International Dentsu | AGNC INVESTMENT vs. Veolia Environnement SA |
| KRONOS WORLDWIDE vs. DOCDATA | KRONOS WORLDWIDE vs. Information Services International Dentsu | KRONOS WORLDWIDE vs. Enter Air SA | KRONOS WORLDWIDE vs. LAir Liquide SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |