Correlation Between AGNC INVESTMENT and Nisshinbo Holdings
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Nisshinbo Holdings 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 Nisshinbo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Nisshinbo Holdings, you can compare the effects of market volatilities on AGNC INVESTMENT and Nisshinbo Holdings 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 Nisshinbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Nisshinbo Holdings.
Diversification Opportunities for AGNC INVESTMENT and Nisshinbo Holdings
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and Nisshinbo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Nisshinbo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisshinbo 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 Nisshinbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisshinbo Holdings has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Nisshinbo Holdings go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Nisshinbo Holdings
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.99 times more return on investment than Nisshinbo Holdings. However, AGNC INVESTMENT is 1.01 times less risky than Nisshinbo Holdings. It trades about 0.03 of its potential returns per unit of risk. Nisshinbo Holdings is currently generating about -0.01 per unit of risk. If you would invest 768.00 in AGNC INVESTMENT on October 13, 2024 and sell it today you would earn a total of 117.00 from holding AGNC INVESTMENT or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Nisshinbo Holdings
Performance |
| Timeline |
| AGNC INVESTMENT |
| Nisshinbo Holdings |
AGNC INVESTMENT and Nisshinbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Nisshinbo Holdings
The main advantage of trading using opposite AGNC INVESTMENT and Nisshinbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Nisshinbo Holdings 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 Nisshinbo Holdings will offset losses from the drop in Nisshinbo Holdings' long position.| AGNC INVESTMENT vs. URBAN OUTFITTERS | AGNC INVESTMENT vs. Charter Communications | AGNC INVESTMENT vs. United Breweries Co | AGNC INVESTMENT vs. Cairo Communication SpA |
| Nisshinbo Holdings vs. Vienna Insurance Group | Nisshinbo Holdings vs. Zurich Insurance Group | Nisshinbo Holdings vs. REVO INSURANCE SPA | Nisshinbo Holdings vs. PENN Entertainment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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