Correlation Between AGNC INVESTMENT and SPARTAN STORES
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and SPARTAN STORES 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 SPARTAN STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and SPARTAN STORES, you can compare the effects of market volatilities on AGNC INVESTMENT and SPARTAN STORES 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 SPARTAN STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and SPARTAN STORES.
Diversification Opportunities for AGNC INVESTMENT and SPARTAN STORES
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGNC and SPARTAN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and SPARTAN STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTAN STORES 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 SPARTAN STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTAN STORES has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and SPARTAN STORES go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and SPARTAN STORES
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.48 times more return on investment than SPARTAN STORES. However, AGNC INVESTMENT is 2.07 times less risky than SPARTAN STORES. It trades about 0.21 of its potential returns per unit of risk. SPARTAN STORES is currently generating about -0.1 per unit of risk. If you would invest 838.00 in AGNC INVESTMENT on November 6, 2024 and sell it today you would earn a total of 124.00 from holding AGNC INVESTMENT or generate 14.8% 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. SPARTAN STORES
Performance |
| Timeline |
| AGNC INVESTMENT |
| SPARTAN STORES |
AGNC INVESTMENT and SPARTAN STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and SPARTAN STORES
The main advantage of trading using opposite AGNC INVESTMENT and SPARTAN STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, SPARTAN STORES 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 SPARTAN STORES will offset losses from the drop in SPARTAN STORES's long position.| AGNC INVESTMENT vs. Elmos Semiconductor SE | AGNC INVESTMENT vs. PT Steel Pipe | AGNC INVESTMENT vs. Lattice Semiconductor | AGNC INVESTMENT vs. Daido Steel Co |
| SPARTAN STORES vs. ALERION CLEANPOWER | SPARTAN STORES vs. Performance Food Group | SPARTAN STORES vs. Cairo Communication SpA | SPARTAN STORES vs. ULTRA CLEAN HLDGS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |