Correlation Between AGNC Investment and Oshidori International
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Oshidori International 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 Oshidori International 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 Oshidori International Holdings, you can compare the effects of market volatilities on AGNC Investment and Oshidori International 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 Oshidori International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Oshidori International.
Diversification Opportunities for AGNC Investment and Oshidori International
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGNC and Oshidori is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Oshidori International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshidori International 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 Oshidori International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshidori International has no effect on the direction of AGNC Investment i.e., AGNC Investment and Oshidori International go up and down completely randomly.
Pair Corralation between AGNC Investment and Oshidori International
Assuming the 90 days horizon AGNC Investment is expected to generate 5807.2 times less return on investment than Oshidori International. But when comparing it to its historical volatility, AGNC Investment Corp is 552.31 times less risky than Oshidori International. It trades about 0.02 of its potential returns per unit of risk. Oshidori International Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Oshidori International Holdings on August 27, 2024 and sell it today you would earn a total of 0.93 from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. Oshidori International Holding
Performance |
| Timeline |
| AGNC Investment Corp |
| Oshidori International |
AGNC Investment and Oshidori International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Oshidori International
The main advantage of trading using opposite AGNC Investment and Oshidori International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Oshidori International 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 Oshidori International will offset losses from the drop in Oshidori International's long position.| AGNC Investment vs. Annaly Capital Management | AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. Invesco Mortgage Capital | AGNC Investment vs. Invesco Mortgage Capital |
| Oshidori International vs. Morgan Stanley | Oshidori International vs. Goldman Sachs Group | Oshidori International vs. Charles Schwab Corp | Oshidori International vs. Interactive Brokers Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |