Correlation Between AGNC INVESTMENT and REGAL HOTEL
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and REGAL HOTEL 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 REGAL HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and REGAL HOTEL INTL, you can compare the effects of market volatilities on AGNC INVESTMENT and REGAL HOTEL 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 REGAL HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and REGAL HOTEL.
Diversification Opportunities for AGNC INVESTMENT and REGAL HOTEL
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and REGAL is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and REGAL HOTEL INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL HOTEL INTL 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 REGAL HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL HOTEL INTL has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and REGAL HOTEL go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and REGAL HOTEL
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.65 times more return on investment than REGAL HOTEL. However, AGNC INVESTMENT is 1.54 times less risky than REGAL HOTEL. It trades about 0.03 of its potential returns per unit of risk. REGAL HOTEL INTL is currently generating about -0.01 per unit of risk. If you would invest 773.00 in AGNC INVESTMENT on November 1, 2024 and sell it today you would earn a total of 161.00 from holding AGNC INVESTMENT or generate 20.83% 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. REGAL HOTEL INTL
Performance |
| Timeline |
| AGNC INVESTMENT |
| REGAL HOTEL INTL |
AGNC INVESTMENT and REGAL HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and REGAL HOTEL
The main advantage of trading using opposite AGNC INVESTMENT and REGAL HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, REGAL HOTEL 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 REGAL HOTEL will offset losses from the drop in REGAL HOTEL's long position.| AGNC INVESTMENT vs. REGAL HOTEL INTL | AGNC INVESTMENT vs. PPHE HOTEL GROUP | AGNC INVESTMENT vs. Meli Hotels International | AGNC INVESTMENT vs. Micron Technology |
| REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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