Correlation Between Broadmark Realty and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Broadmark Realty 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 Broadmark Realty and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadmark Realty Capital and AGNC Investment Corp, you can compare the effects of market volatilities on Broadmark Realty 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 Broadmark Realty with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadmark Realty and AGNC Investment.
Diversification Opportunities for Broadmark Realty and AGNC Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Broadmark and AGNC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Broadmark Realty Capital 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 Broadmark Realty 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 Broadmark Realty Capital 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 Broadmark Realty i.e., Broadmark Realty and AGNC Investment go up and down completely randomly.
Pair Corralation between Broadmark Realty and AGNC Investment
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 |
Broadmark Realty Capital vs. AGNC Investment Corp
Performance |
| Timeline |
| Broadmark Realty Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AGNC Investment Corp |
Broadmark Realty and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadmark Realty and AGNC Investment
The main advantage of trading using opposite Broadmark Realty and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadmark Realty 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.| Broadmark Realty vs. Two Harbors Investments | Broadmark Realty vs. Ares Commercial Real | Broadmark Realty vs. Apollo Commercial Real | Broadmark Realty vs. Ellington Financial |
| AGNC Investment vs. Two Harbors Investments | AGNC Investment vs. Chimera Investment | AGNC Investment vs. ARMOUR Residential REIT | AGNC Investment vs. Arbor Realty Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |