Correlation Between AstraZeneca PLC and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both AstraZeneca PLC 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 AstraZeneca PLC and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstraZeneca PLC and AGNC INVESTMENT, you can compare the effects of market volatilities on AstraZeneca PLC 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 AstraZeneca PLC with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstraZeneca PLC and AGNC INVESTMENT.
Diversification Opportunities for AstraZeneca PLC and AGNC INVESTMENT
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between AstraZeneca and AGNC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AstraZeneca PLC and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and AstraZeneca PLC 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 AstraZeneca PLC 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 AstraZeneca PLC i.e., AstraZeneca PLC and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between AstraZeneca PLC and AGNC INVESTMENT
Assuming the 90 days trading horizon AstraZeneca PLC is expected to under-perform the AGNC INVESTMENT. In addition to that, AstraZeneca PLC is 1.38 times more volatile than AGNC INVESTMENT. It trades about -0.02 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.11 per unit of volatility. If you would invest 814.00 in AGNC INVESTMENT on November 3, 2024 and sell it today you would earn a total of 142.00 from holding AGNC INVESTMENT or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstraZeneca PLC vs. AGNC INVESTMENT
Performance |
| Timeline |
| AstraZeneca PLC |
| AGNC INVESTMENT |
AstraZeneca PLC and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstraZeneca PLC and AGNC INVESTMENT
The main advantage of trading using opposite AstraZeneca PLC and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstraZeneca PLC 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.| AstraZeneca PLC vs. NXP Semiconductors NV | AstraZeneca PLC vs. MagnaChip Semiconductor Corp | AstraZeneca PLC vs. ON SEMICONDUCTOR | AstraZeneca PLC vs. Strategic Education |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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