Correlation Between AGNC INVESTMENT and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Aurubis AG 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 Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Aurubis AG, you can compare the effects of market volatilities on AGNC INVESTMENT and Aurubis AG 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 Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Aurubis AG.
Diversification Opportunities for AGNC INVESTMENT and Aurubis AG
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and Aurubis is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Aurubis AG go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Aurubis AG
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.71 times more return on investment than Aurubis AG. However, AGNC INVESTMENT is 1.41 times less risky than Aurubis AG. It trades about 0.25 of its potential returns per unit of risk. Aurubis AG is currently generating about -0.01 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 | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Aurubis AG
Performance |
| Timeline |
| AGNC INVESTMENT |
| Aurubis AG |
AGNC INVESTMENT and Aurubis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Aurubis AG
The main advantage of trading using opposite AGNC INVESTMENT and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG'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 |
| Aurubis AG vs. Aedas Homes SA | Aurubis AG vs. Television Broadcasts Limited | Aurubis AG vs. Haverty Furniture Companies | Aurubis AG vs. bet at home AG |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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