Correlation Between AGNC INVESTMENT and PT Wintermar
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and PT Wintermar 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 PT Wintermar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and PT Wintermar Offshore, you can compare the effects of market volatilities on AGNC INVESTMENT and PT Wintermar 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 PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and PT Wintermar.
Diversification Opportunities for AGNC INVESTMENT and PT Wintermar
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGNC and W6O is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore 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 PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and PT Wintermar go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and PT Wintermar
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.27 times more return on investment than PT Wintermar. However, AGNC INVESTMENT is 3.71 times less risky than PT Wintermar. It trades about 0.2 of its potential returns per unit of risk. PT Wintermar Offshore is currently generating about -0.11 per unit of risk. If you would invest 889.00 in AGNC INVESTMENT on October 24, 2024 and sell it today you would earn a total of 38.00 from holding AGNC INVESTMENT or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. PT Wintermar Offshore
Performance |
| Timeline |
| AGNC INVESTMENT |
| PT Wintermar Offshore |
AGNC INVESTMENT and PT Wintermar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and PT Wintermar
The main advantage of trading using opposite AGNC INVESTMENT and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, PT Wintermar 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 PT Wintermar will offset losses from the drop in PT Wintermar's long position.| AGNC INVESTMENT vs. RCI Hospitality Holdings | AGNC INVESTMENT vs. SENECA FOODS A | AGNC INVESTMENT vs. PURE FOODS TASMANIA | AGNC INVESTMENT vs. United Natural Foods |
| PT Wintermar vs. NXP Semiconductors NV | PT Wintermar vs. Guangdong Investment Limited | PT Wintermar vs. New Residential Investment | PT Wintermar vs. Magnachip Semiconductor |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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