Correlation Between AG Mortgage and Associated Banc
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Associated Banc 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 AG Mortgage and Associated Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Associated Banc Corp Depositary, you can compare the effects of market volatilities on AG Mortgage and Associated Banc 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 AG Mortgage with a short position of Associated Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Associated Banc.
Diversification Opportunities for AG Mortgage and Associated Banc
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MITN and Associated is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Associated Banc Corp Depositar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc Corp and AG Mortgage 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 AG Mortgage Investment are associated (or correlated) with Associated Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of AG Mortgage i.e., AG Mortgage and Associated Banc go up and down completely randomly.
Pair Corralation between AG Mortgage and Associated Banc
Given the investment horizon of 90 days AG Mortgage is expected to generate 3.0 times less return on investment than Associated Banc. But when comparing it to its historical volatility, AG Mortgage Investment is 6.53 times less risky than Associated Banc. It trades about 0.37 of its potential returns per unit of risk. Associated Banc Corp Depositary is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,123 in Associated Banc Corp Depositary on October 31, 2024 and sell it today you would earn a total of 97.00 from holding Associated Banc Corp Depositary or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Associated Banc Corp Depositar
Performance |
| Timeline |
| AG Mortgage Investment |
| Associated Banc Corp |
AG Mortgage and Associated Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Associated Banc
The main advantage of trading using opposite AG Mortgage and Associated Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Associated Banc 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 Associated Banc will offset losses from the drop in Associated Banc's long position.| AG Mortgage vs. Insteel Industries | AG Mortgage vs. Chester Mining | AG Mortgage vs. Perseus Mining Limited | AG Mortgage vs. ioneer Ltd American |
| Associated Banc vs. Legacy Education | Associated Banc vs. NVIDIA | Associated Banc vs. Apple Inc | Associated Banc vs. Microsoft |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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