Correlation Between Transcontinental and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Transcontinental and AGNC INVESTMENT 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 Transcontinental and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transcontinental and AGNC INVESTMENT, you can compare the effects of market volatilities on Transcontinental and AGNC INVESTMENT 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 Transcontinental with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transcontinental and AGNC INVESTMENT.
Diversification Opportunities for Transcontinental and AGNC INVESTMENT
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transcontinental and AGNC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Transcontinental and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and Transcontinental 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 Transcontinental are associated (or correlated) with AGNC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC INVESTMENT has no effect on the direction of Transcontinental i.e., Transcontinental and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between Transcontinental and AGNC INVESTMENT
Assuming the 90 days horizon Transcontinental is expected to generate 1.1 times more return on investment than AGNC INVESTMENT. However, Transcontinental is 1.1 times more volatile than AGNC INVESTMENT. It trades about 0.11 of its potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.05 per unit of risk. If you would invest 1,020 in Transcontinental on October 26, 2024 and sell it today you would earn a total of 190.00 from holding Transcontinental or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transcontinental vs. AGNC INVESTMENT
Performance |
| Timeline |
| Transcontinental |
| AGNC INVESTMENT |
Transcontinental and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transcontinental and AGNC INVESTMENT
The main advantage of trading using opposite Transcontinental and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transcontinental position performs unexpectedly, AGNC INVESTMENT 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 AGNC INVESTMENT will offset losses from the drop in AGNC INVESTMENT's long position.| Transcontinental vs. AGNC INVESTMENT | Transcontinental vs. WILLIS LEASE FIN | Transcontinental vs. Japan Asia Investment | Transcontinental vs. Lendlease Group |
| AGNC INVESTMENT vs. ATRESMEDIA | AGNC INVESTMENT vs. Platinum Investment Management | AGNC INVESTMENT vs. Waste Management | AGNC INVESTMENT vs. ANTA SPORTS PRODUCT |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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