Correlation Between Sitka Gold and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Sitka Gold 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 Sitka Gold and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitka Gold Corp and AGNC Investment Corp, you can compare the effects of market volatilities on Sitka Gold 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 Sitka Gold with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitka Gold and AGNC Investment.
Diversification Opportunities for Sitka Gold and AGNC Investment
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sitka and AGNC is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sitka Gold Corp 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 Sitka Gold 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 Sitka Gold Corp 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 Sitka Gold i.e., Sitka Gold and AGNC Investment go up and down completely randomly.
Pair Corralation between Sitka Gold and AGNC Investment
Assuming the 90 days horizon Sitka Gold Corp is expected to under-perform the AGNC Investment. In addition to that, Sitka Gold is 14.17 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 0.0 per unit of volatility. If you would invest 2,574 in AGNC Investment Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding AGNC Investment Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitka Gold Corp vs. AGNC Investment Corp
Performance |
| Timeline |
| Sitka Gold Corp |
| AGNC Investment Corp |
Sitka Gold and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitka Gold and AGNC Investment
The main advantage of trading using opposite Sitka Gold and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitka Gold 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.| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Palamina Corp | Sitka Gold vs. BTU Metals Corp |
| AGNC Investment vs. Annaly Capital Management | AGNC Investment vs. Annaly Capital Management | AGNC Investment vs. AGNC Investment Corp | AGNC Investment vs. New York Mortgage |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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