Correlation Between Broad Capital and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Broad Capital 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 Broad Capital and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and AGNC Investment Corp, you can compare the effects of market volatilities on Broad Capital 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 Broad Capital with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and AGNC Investment.
Diversification Opportunities for Broad Capital and AGNC Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Broad and AGNC is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition 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 Broad Capital 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 Broad Capital Acquisition 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 Broad Capital i.e., Broad Capital and AGNC Investment go up and down completely randomly.
Pair Corralation between Broad Capital and AGNC Investment
If you would invest 2,536 in AGNC Investment Corp on August 28, 2024 and sell it today you would earn a total of 23.00 from holding AGNC Investment Corp or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broad Capital Acquisition vs. AGNC Investment Corp
Performance |
| Timeline |
| Broad Capital Acquisition |
| AGNC Investment Corp |
Broad Capital and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broad Capital and AGNC Investment
The main advantage of trading using opposite Broad Capital and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital 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.| Broad Capital vs. Finnovate Acquisition Corp | Broad Capital vs. Welsbach Technology Metals | Broad Capital vs. Healthcare AI Acquisition | Broad Capital vs. Metal Sky Star |
| AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. Aquagold International | AGNC Investment vs. Morningstar Unconstrained Allocation | AGNC Investment vs. Thrivent High Yield |
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.
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