Correlation Between AGNC INVESTMENT and MUTUIONLINE
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and MUTUIONLINE 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 MUTUIONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and MUTUIONLINE, you can compare the effects of market volatilities on AGNC INVESTMENT and MUTUIONLINE 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 MUTUIONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and MUTUIONLINE.
Diversification Opportunities for AGNC INVESTMENT and MUTUIONLINE
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGNC and MUTUIONLINE is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and MUTUIONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUTUIONLINE 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 MUTUIONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUTUIONLINE has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and MUTUIONLINE go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and MUTUIONLINE
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.77 times more return on investment than MUTUIONLINE. However, AGNC INVESTMENT is 1.29 times less risky than MUTUIONLINE. It trades about 0.2 of its potential returns per unit of risk. MUTUIONLINE is currently generating about 0.11 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 49.00 from holding AGNC INVESTMENT or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
AGNC INVESTMENT vs. MUTUIONLINE
Performance |
| Timeline |
| AGNC INVESTMENT |
| MUTUIONLINE |
AGNC INVESTMENT and MUTUIONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and MUTUIONLINE
The main advantage of trading using opposite AGNC INVESTMENT and MUTUIONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, MUTUIONLINE 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 MUTUIONLINE will offset losses from the drop in MUTUIONLINE's long position.| AGNC INVESTMENT vs. FAST RETAIL ADR | AGNC INVESTMENT vs. Burlington Stores | AGNC INVESTMENT vs. Meiko Electronics Co | AGNC INVESTMENT vs. Arrow Electronics |
| MUTUIONLINE vs. United Natural Foods | MUTUIONLINE vs. Perseus Mining Limited | MUTUIONLINE vs. Thai Beverage Public | MUTUIONLINE vs. De Grey Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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