Correlation Between AGNC Investment and Sitka Gold
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Sitka Gold 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 Sitka Gold 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 Sitka Gold Corp, you can compare the effects of market volatilities on AGNC Investment and Sitka Gold 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 Sitka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Sitka Gold.
Diversification Opportunities for AGNC Investment and Sitka Gold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGNC and Sitka is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka Gold Corp 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 Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of AGNC Investment i.e., AGNC Investment and Sitka Gold go up and down completely randomly.
Pair Corralation between AGNC Investment and Sitka Gold
Assuming the 90 days horizon AGNC Investment Corp is expected to generate 0.06 times more return on investment than Sitka Gold. However, AGNC Investment Corp is 15.82 times less risky than Sitka Gold. It trades about 0.02 of its potential returns per unit of risk. Sitka Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 2,567 in AGNC Investment Corp on August 27, 2024 and sell it today you would earn a total of 4.00 from holding AGNC Investment Corp or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. Sitka Gold Corp
Performance |
| Timeline |
| AGNC Investment Corp |
| Sitka Gold Corp |
AGNC Investment and Sitka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Sitka Gold
The main advantage of trading using opposite AGNC Investment and Sitka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Sitka Gold 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 Sitka Gold will offset losses from the drop in Sitka Gold'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 |
| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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