Correlation Between AGNC INVESTMENT and Kemper
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Kemper 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 Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Kemper, you can compare the effects of market volatilities on AGNC INVESTMENT and Kemper 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 Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Kemper.
Diversification Opportunities for AGNC INVESTMENT and Kemper
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AGNC and Kemper is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper 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 Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Kemper go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Kemper
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.49 times more return on investment than Kemper. However, AGNC INVESTMENT is 2.02 times less risky than Kemper. It trades about 0.15 of its potential returns per unit of risk. Kemper is currently generating about -0.02 per unit of risk. If you would invest 888.00 in AGNC INVESTMENT on September 14, 2024 and sell it today you would earn a total of 24.00 from holding AGNC INVESTMENT or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Kemper
Performance |
| Timeline |
| AGNC INVESTMENT |
| Kemper |
AGNC INVESTMENT and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Kemper
The main advantage of trading using opposite AGNC INVESTMENT and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| AGNC INVESTMENT vs. PennyMac Mortgage Investment | AGNC INVESTMENT vs. PLAYSTUDIOS A DL 0001 | AGNC INVESTMENT vs. Hollywood Bowl Group | AGNC INVESTMENT vs. CDL INVESTMENT |
| Kemper vs. TOREX SEMICONDUCTOR LTD | Kemper vs. AGNC INVESTMENT | Kemper vs. SLR Investment Corp | Kemper vs. REGAL ASIAN INVESTMENTS |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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