Correlation Between FUYO GENERAL and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and AGNC INVESTMENT, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and AGNC INVESTMENT.
Diversification Opportunities for FUYO GENERAL and AGNC INVESTMENT
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FUYO and AGNC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between FUYO GENERAL and AGNC INVESTMENT
Assuming the 90 days horizon FUYO GENERAL is expected to generate 1.64 times less return on investment than AGNC INVESTMENT. But when comparing it to its historical volatility, FUYO GENERAL LEASE is 1.05 times less risky than AGNC INVESTMENT. It trades about 0.02 of its potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 771.00 in AGNC INVESTMENT on November 7, 2024 and sell it today you would earn a total of 195.00 from holding AGNC INVESTMENT or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. AGNC INVESTMENT
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| AGNC INVESTMENT |
FUYO GENERAL and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and AGNC INVESTMENT
The main advantage of trading using opposite FUYO GENERAL and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Suntory Beverage Food | FUYO GENERAL vs. MTY Food Group | FUYO GENERAL vs. GREENX METALS LTD | FUYO GENERAL vs. GWILLI FOOD |
| AGNC INVESTMENT vs. Elmos Semiconductor SE | AGNC INVESTMENT vs. PT Steel Pipe | AGNC INVESTMENT vs. Lattice Semiconductor | AGNC INVESTMENT vs. Daido Steel Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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