Correlation Between Qudian and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Qudian 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 Qudian and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qudian Inc and AGNC Investment Corp, you can compare the effects of market volatilities on Qudian 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 Qudian with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qudian and AGNC Investment.
Diversification Opportunities for Qudian and AGNC Investment
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Qudian and AGNC is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Qudian Inc 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 Qudian 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 Qudian Inc 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 Qudian i.e., Qudian and AGNC Investment go up and down completely randomly.
Pair Corralation between Qudian and AGNC Investment
Allowing for the 90-day total investment horizon Qudian Inc is expected to under-perform the AGNC Investment. In addition to that, Qudian is 2.46 times more volatile than AGNC Investment Corp. It trades about -0.07 of its total potential returns per unit of risk. AGNC Investment Corp is currently generating about 0.11 per unit of volatility. If you would invest 952.00 in AGNC Investment Corp on August 27, 2024 and sell it today you would earn a total of 22.00 from holding AGNC Investment Corp or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qudian Inc vs. AGNC Investment Corp
Performance |
| Timeline |
| Qudian Inc |
| AGNC Investment Corp |
Qudian and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qudian and AGNC Investment
The main advantage of trading using opposite Qudian and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qudian 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.The idea behind Qudian Inc and AGNC Investment Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AGNC Investment vs. Blackstone Mortgage Trust | AGNC Investment vs. Omega Healthcare Investors | AGNC Investment vs. Medical Properties Trust |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |