Correlation Between CompuGroup Medical and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical 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 CompuGroup Medical and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CompuGroup Medical SE and AGNC INVESTMENT, you can compare the effects of market volatilities on CompuGroup Medical 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 CompuGroup Medical with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and AGNC INVESTMENT.
Diversification Opportunities for CompuGroup Medical and AGNC INVESTMENT
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompuGroup and AGNC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and CompuGroup Medical 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 CompuGroup Medical SE 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 has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between CompuGroup Medical and AGNC INVESTMENT
Assuming the 90 days trading horizon CompuGroup Medical is expected to generate 1.08 times less return on investment than AGNC INVESTMENT. But when comparing it to its historical volatility, CompuGroup Medical SE is 1.59 times less risky than AGNC INVESTMENT. It trades about 0.36 of its potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 900.00 in AGNC INVESTMENT on November 2, 2024 and sell it today you would earn a total of 62.00 from holding AGNC INVESTMENT or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. AGNC INVESTMENT
Performance |
| Timeline |
| CompuGroup Medical |
| AGNC INVESTMENT |
CompuGroup Medical and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and AGNC INVESTMENT
The main advantage of trading using opposite CompuGroup Medical and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical 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.| CompuGroup Medical vs. The Boston Beer | CompuGroup Medical vs. Fevertree Drinks PLC | CompuGroup Medical vs. DATATEC LTD 2 | CompuGroup Medical vs. Information Services International Dentsu |
| AGNC INVESTMENT vs. OURGAME INTHOLDL 00005 | AGNC INVESTMENT vs. Nok Airlines PCL | AGNC INVESTMENT vs. GigaMedia | AGNC INVESTMENT vs. TROPHY GAMES DEV |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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