Correlation Between AG Mortgage and Bowen Acquisition
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Bowen Acquisition 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 Bowen Acquisition 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 Bowen Acquisition Corp, you can compare the effects of market volatilities on AG Mortgage and Bowen Acquisition 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 Bowen Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Bowen Acquisition.
Diversification Opportunities for AG Mortgage and Bowen Acquisition
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MITN and Bowen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Bowen Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowen Acquisition 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 Bowen Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowen Acquisition Corp has no effect on the direction of AG Mortgage i.e., AG Mortgage and Bowen Acquisition go up and down completely randomly.
Pair Corralation between AG Mortgage and Bowen Acquisition
Given the investment horizon of 90 days AG Mortgage Investment is expected to generate 0.02 times more return on investment than Bowen Acquisition. However, AG Mortgage Investment is 46.02 times less risky than Bowen Acquisition. It trades about 0.34 of its potential returns per unit of risk. Bowen Acquisition Corp is currently generating about -0.38 per unit of risk. If you would invest 2,473 in AG Mortgage Investment on November 7, 2024 and sell it today you would earn a total of 39.00 from holding AG Mortgage Investment or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Bowen Acquisition Corp
Performance |
| Timeline |
| AG Mortgage Investment |
| Bowen Acquisition Corp |
AG Mortgage and Bowen Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Bowen Acquisition
The main advantage of trading using opposite AG Mortgage and Bowen Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Bowen Acquisition 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 Bowen Acquisition will offset losses from the drop in Bowen Acquisition's long position.| AG Mortgage vs. AMCON Distributing | AG Mortgage vs. SunOpta | AG Mortgage vs. Austevoll Seafood ASA | AG Mortgage vs. Vital Farms |
| Bowen Acquisition vs. Spyre Therapeutics | Bowen Acquisition vs. Inhibrx | Bowen Acquisition vs. Summit Hotel Properties | Bowen Acquisition vs. Lipocine |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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