Correlation Between WIZZ AIR and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both WIZZ AIR 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 WIZZ AIR and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIZZ AIR HLDGUNSPADR4 and AGNC INVESTMENT, you can compare the effects of market volatilities on WIZZ AIR 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 WIZZ AIR with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIZZ AIR and AGNC INVESTMENT.
Diversification Opportunities for WIZZ AIR and AGNC INVESTMENT
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIZZ and AGNC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding WIZZ AIR HLDGUNSPADR4 and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and WIZZ AIR 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 WIZZ AIR HLDGUNSPADR4 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 WIZZ AIR i.e., WIZZ AIR and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between WIZZ AIR and AGNC INVESTMENT
Assuming the 90 days trading horizon WIZZ AIR HLDGUNSPADR4 is expected to under-perform the AGNC INVESTMENT. In addition to that, WIZZ AIR is 3.07 times more volatile than AGNC INVESTMENT. It trades about -0.01 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.07 per unit of volatility. If you would invest 754.00 in AGNC INVESTMENT on September 14, 2024 and sell it today you would earn a total of 158.00 from holding AGNC INVESTMENT or generate 20.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIZZ AIR HLDGUNSPADR4 vs. AGNC INVESTMENT
Performance |
| Timeline |
| WIZZ AIR HLDGUNSPADR4 |
| AGNC INVESTMENT |
WIZZ AIR and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIZZ AIR and AGNC INVESTMENT
The main advantage of trading using opposite WIZZ AIR and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIZZ AIR 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.| WIZZ AIR vs. RYANAIR HLDGS ADR | WIZZ AIR vs. Ryanair Holdings plc | WIZZ AIR vs. Superior Plus Corp | WIZZ AIR vs. SIVERS SEMICONDUCTORS AB |
| AGNC INVESTMENT vs. PennyMac Mortgage Investment | AGNC INVESTMENT vs. PLAYSTUDIOS A DL 0001 | AGNC INVESTMENT vs. Hollywood Bowl Group | AGNC INVESTMENT vs. CDL INVESTMENT |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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