Correlation Between AGNC INVESTMENT and Herman Miller
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Herman Miller 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 Herman Miller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Herman Miller, you can compare the effects of market volatilities on AGNC INVESTMENT and Herman Miller 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 Herman Miller. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Herman Miller.
Diversification Opportunities for AGNC INVESTMENT and Herman Miller
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and Herman is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Herman Miller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herman Miller 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 Herman Miller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herman Miller has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Herman Miller go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Herman Miller
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.7 times more return on investment than Herman Miller. However, AGNC INVESTMENT is 1.43 times less risky than Herman Miller. It trades about 0.25 of its potential returns per unit of risk. Herman Miller is currently generating about -0.04 per unit of risk. If you would invest 889.00 in AGNC INVESTMENT on November 3, 2024 and sell it today you would earn a total of 67.00 from holding AGNC INVESTMENT or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Herman Miller
Performance |
| Timeline |
| AGNC INVESTMENT |
| Herman Miller |
AGNC INVESTMENT and Herman Miller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Herman Miller
The main advantage of trading using opposite AGNC INVESTMENT and Herman Miller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Herman Miller 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 Herman Miller will offset losses from the drop in Herman Miller's long position.| AGNC INVESTMENT vs. PLAYMATES TOYS | AGNC INVESTMENT vs. BAKED GAMES SA | AGNC INVESTMENT vs. International Game Technology | AGNC INVESTMENT vs. CONTAGIOUS GAMING INC |
| Herman Miller vs. BlueScope Steel Limited | Herman Miller vs. Monument Mining Limited | Herman Miller vs. GRIFFIN MINING LTD | Herman Miller vs. Khiron Life Sciences |
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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