Correlation Between Distoken Acquisition and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition 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 Distoken Acquisition and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and AGNC Investment Corp, you can compare the effects of market volatilities on Distoken Acquisition 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 Distoken Acquisition with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and AGNC Investment.
Diversification Opportunities for Distoken Acquisition and AGNC Investment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Distoken and AGNC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Distoken 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 Distoken Acquisition 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 Distoken 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 Distoken Acquisition i.e., Distoken Acquisition and AGNC Investment go up and down completely randomly.
Pair Corralation between Distoken Acquisition and AGNC Investment
Given the investment horizon of 90 days Distoken Acquisition is expected to generate 1.26 times more return on investment than AGNC Investment. However, Distoken Acquisition is 1.26 times more volatile than AGNC Investment Corp. It trades about 0.24 of its potential returns per unit of risk. AGNC Investment Corp is currently generating about 0.11 per unit of risk. If you would invest 1,091 in Distoken Acquisition on August 24, 2024 and sell it today you would earn a total of 27.00 from holding Distoken Acquisition or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Distoken Acquisition vs. AGNC Investment Corp
Performance |
| Timeline |
| Distoken Acquisition |
| AGNC Investment Corp |
Distoken Acquisition and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and AGNC Investment
The main advantage of trading using opposite Distoken Acquisition and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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.| Distoken Acquisition vs. Sweetgreen | Distoken Acquisition vs. The Cheesecake Factory | Distoken Acquisition vs. Uranium Energy Corp | Distoken Acquisition vs. BJs Restaurants |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |