Correlation Between United Breweries and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both United Breweries 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 United Breweries and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Breweries Co and AGNC INVESTMENT, you can compare the effects of market volatilities on United Breweries 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 United Breweries with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and AGNC INVESTMENT.
Diversification Opportunities for United Breweries and AGNC INVESTMENT
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and AGNC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries Co and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and United Breweries 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 United Breweries Co 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 United Breweries i.e., United Breweries and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between United Breweries and AGNC INVESTMENT
Assuming the 90 days trading horizon United Breweries Co is expected to under-perform the AGNC INVESTMENT. In addition to that, United Breweries is 1.17 times more volatile than AGNC INVESTMENT. It trades about -0.01 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.03 per unit of volatility. If you would invest 768.00 in AGNC INVESTMENT on October 14, 2024 and sell it today you would earn a total of 117.00 from holding AGNC INVESTMENT or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Breweries Co vs. AGNC INVESTMENT
Performance |
| Timeline |
| United Breweries |
| AGNC INVESTMENT |
United Breweries and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and AGNC INVESTMENT
The main advantage of trading using opposite United Breweries and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries 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.| United Breweries vs. BW OFFSHORE LTD | United Breweries vs. AGRICULTBK HADR25 YC | United Breweries vs. Federal Agricultural Mortgage | United Breweries vs. TITAN MACHINERY |
| AGNC INVESTMENT vs. URBAN OUTFITTERS | AGNC INVESTMENT vs. Charter Communications | AGNC INVESTMENT vs. United Breweries Co | AGNC INVESTMENT vs. Cairo Communication SpA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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