Correlation Between AGNC INVESTMENT and ATT
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and ATT 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 ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and ATT Inc, you can compare the effects of market volatilities on AGNC INVESTMENT and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and ATT.
Diversification Opportunities for AGNC INVESTMENT and ATT
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGNC and ATT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and ATT go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and ATT
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 1.73 times less return on investment than ATT. But when comparing it to its historical volatility, AGNC INVESTMENT is 1.71 times less risky than ATT. It trades about 0.16 of its potential returns per unit of risk. ATT Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,203 in ATT Inc on November 1, 2024 and sell it today you would earn a total of 142.00 from holding ATT Inc or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. ATT Inc
Performance |
| Timeline |
| AGNC INVESTMENT |
| ATT Inc |
AGNC INVESTMENT and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and ATT
The main advantage of trading using opposite AGNC INVESTMENT and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT'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 |
| ATT vs. GREENX METALS LTD | ATT vs. PennyMac Mortgage Investment | ATT vs. HK Electric Investments | ATT vs. PennantPark Investment |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |