Correlation Between Brookfield Property and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Brookfield Property 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 Brookfield Property and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Property Preferred and AGNC Investment Corp, you can compare the effects of market volatilities on Brookfield Property 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 Brookfield Property with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Property and AGNC Investment.
Diversification Opportunities for Brookfield Property and AGNC Investment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and AGNC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Property Preferred and AGNC Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC Investment Corp and Brookfield Property 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 Brookfield Property Preferred 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 Corp has no effect on the direction of Brookfield Property i.e., Brookfield Property and AGNC Investment go up and down completely randomly.
Pair Corralation between Brookfield Property and AGNC Investment
Assuming the 90 days horizon Brookfield Property Preferred is expected to under-perform the AGNC Investment. In addition to that, Brookfield Property is 8.07 times more volatile than AGNC Investment Corp. It trades about -0.13 of its total potential returns per unit of risk. AGNC Investment Corp is currently generating about -0.01 per unit of volatility. If you would invest 2,527 in AGNC Investment Corp on September 1, 2024 and sell it today you would lose (2.00) from holding AGNC Investment Corp or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Property Preferred vs. AGNC Investment Corp
Performance |
| Timeline |
| Brookfield Property |
| AGNC Investment Corp |
Brookfield Property and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Property and AGNC Investment
The main advantage of trading using opposite Brookfield Property and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Property 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.| Brookfield Property vs. Brookfield Property Partners | Brookfield Property vs. Brookfield Property Partners | Brookfield Property vs. Brookfield Property Partners | Brookfield Property vs. Brookfield Corp |
| AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. Annaly Capital Management |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |