Correlation Between AGNC INVESTMENT and Singapore Reinsurance
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Singapore Reinsurance 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 Singapore Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Singapore Reinsurance, you can compare the effects of market volatilities on AGNC INVESTMENT and Singapore Reinsurance 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 Singapore Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Singapore Reinsurance.
Diversification Opportunities for AGNC INVESTMENT and Singapore Reinsurance
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGNC and Singapore is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Singapore Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Reinsurance 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 Singapore Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Reinsurance has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Singapore Reinsurance go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Singapore Reinsurance
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.61 times more return on investment than Singapore Reinsurance. However, AGNC INVESTMENT is 1.63 times less risky than Singapore Reinsurance. It trades about 0.13 of its potential returns per unit of risk. Singapore Reinsurance is currently generating about 0.03 per unit of risk. If you would invest 890.00 in AGNC INVESTMENT on September 15, 2024 and sell it today you would earn a total of 20.00 from holding AGNC INVESTMENT or generate 2.25% 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. Singapore Reinsurance
Performance |
| Timeline |
| AGNC INVESTMENT |
| Singapore Reinsurance |
AGNC INVESTMENT and Singapore Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Singapore Reinsurance
The main advantage of trading using opposite AGNC INVESTMENT and Singapore Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Singapore Reinsurance 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 Singapore Reinsurance will offset losses from the drop in Singapore Reinsurance's long position.| AGNC INVESTMENT vs. PKSHA TECHNOLOGY INC | AGNC INVESTMENT vs. Wayside Technology Group | AGNC INVESTMENT vs. ATOSS SOFTWARE | AGNC INVESTMENT vs. Sunny Optical Technology |
| Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance vs. Apple Inc | Singapore Reinsurance 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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