Correlation Between Ringmetall and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Ringmetall 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 Ringmetall and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ringmetall SE and AGNC INVESTMENT, you can compare the effects of market volatilities on Ringmetall 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 Ringmetall with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ringmetall and AGNC INVESTMENT.
Diversification Opportunities for Ringmetall and AGNC INVESTMENT
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ringmetall and AGNC is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ringmetall SE and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and Ringmetall 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 Ringmetall 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 Ringmetall i.e., Ringmetall and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between Ringmetall and AGNC INVESTMENT
Assuming the 90 days trading horizon Ringmetall is expected to generate 1.31 times less return on investment than AGNC INVESTMENT. In addition to that, Ringmetall is 2.42 times more volatile than AGNC INVESTMENT. It trades about 0.02 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.05 per unit of volatility. If you would invest 663.00 in AGNC INVESTMENT on December 13, 2024 and sell it today you would earn a total of 279.00 from holding AGNC INVESTMENT or generate 42.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ringmetall SE vs. AGNC INVESTMENT
Performance |
| Timeline |
| Ringmetall SE |
| AGNC INVESTMENT |
Ringmetall and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ringmetall and AGNC INVESTMENT
The main advantage of trading using opposite Ringmetall and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ringmetall 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.| Ringmetall vs. Snap on Incorporated | ||
| Ringmetall vs. Stanley Black Decker | ||
| Ringmetall vs. Toro Co | ||
| Ringmetall vs. Lincoln Electric Holdings |
| AGNC INVESTMENT vs. ADRIATIC METALS LS 013355 | ||
| AGNC INVESTMENT vs. East Africa Metals | ||
| AGNC INVESTMENT vs. Ringmetall SE | ||
| AGNC INVESTMENT vs. Scottish Mortgage Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |