Correlation Between Rithm Property and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Rithm Property 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 Rithm Property and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and AGNC Investment Corp, you can compare the effects of market volatilities on Rithm Property 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 Rithm Property with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and AGNC Investment.
Diversification Opportunities for Rithm Property and AGNC Investment
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rithm and AGNC is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust 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 Rithm Property 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 Rithm Property Trust 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 Rithm Property i.e., Rithm Property and AGNC Investment go up and down completely randomly.
Pair Corralation between Rithm Property and AGNC Investment
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the AGNC Investment. In addition to that, Rithm Property is 6.39 times more volatile than AGNC Investment Corp. It trades about -0.05 of its total potential returns per unit of risk. AGNC Investment Corp is currently generating about 0.17 per unit of volatility. If you would invest 2,061 in AGNC Investment Corp on September 12, 2024 and sell it today you would earn a total of 414.00 from holding AGNC Investment Corp or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Property Trust vs. AGNC Investment Corp
Performance |
| Timeline |
| Rithm Property Trust |
| AGNC Investment Corp |
Rithm Property and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Property and AGNC Investment
The main advantage of trading using opposite Rithm Property and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property 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.| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Inventrust Properties Corp | Rithm Property vs. Acadia Realty Trust |
| AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. Annaly Capital Management | AGNC Investment vs. Annaly Capital Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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