Correlation Between AGNC Investment and Broadmark Realty
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Broadmark Realty 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 Broadmark Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC Investment Corp and Broadmark Realty Capital, you can compare the effects of market volatilities on AGNC Investment and Broadmark Realty 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 Broadmark Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Broadmark Realty.
Diversification Opportunities for AGNC Investment and Broadmark Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGNC and Broadmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Broadmark Realty Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadmark Realty Capital 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 Corp are associated (or correlated) with Broadmark Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadmark Realty Capital has no effect on the direction of AGNC Investment i.e., AGNC Investment and Broadmark Realty go up and down completely randomly.
Pair Corralation between AGNC Investment and Broadmark Realty
If you would invest 950.00 in AGNC Investment Corp on November 18, 2024 and sell it today you would earn a total of 93.00 from holding AGNC Investment Corp or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. Broadmark Realty Capital
Performance |
| Timeline |
| AGNC Investment Corp |
| Broadmark Realty Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
AGNC Investment and Broadmark Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Broadmark Realty
The main advantage of trading using opposite AGNC Investment and Broadmark Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Broadmark Realty 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 Broadmark Realty will offset losses from the drop in Broadmark Realty's long position.| AGNC Investment vs. Two Harbors Investments | AGNC Investment vs. Chimera Investment | AGNC Investment vs. ARMOUR Residential REIT | AGNC Investment vs. Arbor Realty Trust |
| Broadmark Realty vs. Two Harbors Investments | Broadmark Realty vs. Ares Commercial Real | Broadmark Realty vs. Apollo Commercial Real | Broadmark Realty vs. Ellington Financial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |