Correlation Between RCI Hospitality and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both RCI Hospitality 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 RCI Hospitality and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCI Hospitality Holdings and AGNC INVESTMENT, you can compare the effects of market volatilities on RCI Hospitality 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 RCI Hospitality with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and AGNC INVESTMENT.
Diversification Opportunities for RCI Hospitality and AGNC INVESTMENT
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RCI and AGNC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and RCI Hospitality 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 RCI Hospitality Holdings 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 RCI Hospitality i.e., RCI Hospitality and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between RCI Hospitality and AGNC INVESTMENT
Assuming the 90 days trading horizon RCI Hospitality Holdings is expected to under-perform the AGNC INVESTMENT. In addition to that, RCI Hospitality is 1.19 times more volatile than AGNC INVESTMENT. It trades about -0.11 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.25 per unit of volatility. If you would invest 889.00 in AGNC INVESTMENT on November 3, 2024 and sell it today you would earn a total of 67.00 from holding AGNC INVESTMENT or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. AGNC INVESTMENT
Performance |
| Timeline |
| RCI Hospitality Holdings |
| AGNC INVESTMENT |
RCI Hospitality and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and AGNC INVESTMENT
The main advantage of trading using opposite RCI Hospitality and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality 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.| RCI Hospitality vs. Inspire Medical Systems | RCI Hospitality vs. Ares Management Corp | RCI Hospitality vs. Acadia Healthcare | RCI Hospitality vs. Siemens Healthineers AG |
| AGNC INVESTMENT vs. PLAYMATES TOYS | AGNC INVESTMENT vs. BAKED GAMES SA | AGNC INVESTMENT vs. International Game Technology | AGNC INVESTMENT vs. CONTAGIOUS GAMING INC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |