Correlation Between AGNC INVESTMENT and INDO-RAMA SYNTHETIC

Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and INDO-RAMA SYNTHETIC 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 AGNC INVESTMENT and INDO-RAMA SYNTHETIC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGNC INVESTMENT and INDO RAMA SYNTHETIC, you can compare the effects of market volatilities on AGNC INVESTMENT and INDO-RAMA SYNTHETIC 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 AGNC INVESTMENT with a short position of INDO-RAMA SYNTHETIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and INDO-RAMA SYNTHETIC.

Diversification Opportunities for AGNC INVESTMENT and INDO-RAMA SYNTHETIC

0.0

Correlation Coefficient

AGNC INVESTMENT  INDO-RAMA SYNTHETIC

Pay attention - limited upside

The 3 months correlation between AGNC and INDO-RAMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and INDO RAMA SYNTHETIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDO RAMA SYNTHETIC and AGNC INVESTMENT 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 AGNC INVESTMENT are associated (or correlated) with INDO-RAMA SYNTHETIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDO RAMA SYNTHETIC has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and INDO-RAMA SYNTHETIC go up and down completely randomly.

Pair Corralation between AGNC INVESTMENT and INDO-RAMA SYNTHETIC

Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.51 times more return on investment than INDO-RAMA SYNTHETIC. However, AGNC INVESTMENT is 1.96 times less risky than INDO-RAMA SYNTHETIC. It trades about 0.03 of its potential returns per unit of risk. INDO RAMA SYNTHETIC is currently generating about -0.01 per unit of risk. If you would invest  741.00  in AGNC INVESTMENT on September 28, 2024 and sell it today you would earn a total of  160.00  from holding AGNC INVESTMENT or generate 21.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGNC INVESTMENT  vs.  INDO RAMA SYNTHETIC

AGNC INVESTMENT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGNC INVESTMENT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AGNC INVESTMENT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

INDO RAMA SYNTHETIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INDO RAMA SYNTHETIC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, INDO-RAMA SYNTHETIC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AGNC INVESTMENT and INDO-RAMA SYNTHETIC

The main advantage of trading using opposite AGNC INVESTMENT and INDO-RAMA SYNTHETIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, INDO-RAMA SYNTHETIC 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 INDO-RAMA SYNTHETIC will offset losses from the drop in INDO-RAMA SYNTHETIC's long position.

The idea behind AGNC INVESTMENT and INDO RAMA SYNTHETIC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.