Correlation Between INTER CARS and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both INTER CARS 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 INTER CARS and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and AGNC INVESTMENT, you can compare the effects of market volatilities on INTER CARS 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 INTER CARS with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and AGNC INVESTMENT.
Diversification Opportunities for INTER CARS and AGNC INVESTMENT
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTER and AGNC is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and INTER CARS 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 INTER CARS SA 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 INTER CARS i.e., INTER CARS and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between INTER CARS and AGNC INVESTMENT
Assuming the 90 days horizon INTER CARS SA is expected to generate 1.79 times more return on investment than AGNC INVESTMENT. However, INTER CARS is 1.79 times more volatile than AGNC INVESTMENT. It trades about 0.31 of its potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.07 per unit of risk. If you would invest 10,700 in INTER CARS SA on October 22, 2024 and sell it today you would earn a total of 2,760 from holding INTER CARS SA or generate 25.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. AGNC INVESTMENT
Performance |
| Timeline |
| INTER CARS SA |
| AGNC INVESTMENT |
INTER CARS and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and AGNC INVESTMENT
The main advantage of trading using opposite INTER CARS and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS 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.| INTER CARS vs. Telecom Argentina SA | INTER CARS vs. GAMING FAC SA | INTER CARS vs. HUTCHISON TELECOMM | INTER CARS vs. Gaming and Leisure |
| AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc | AGNC INVESTMENT vs. Apple Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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