Correlation Between Amgen and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Amgen 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 Amgen and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and AGNC INVESTMENT, you can compare the effects of market volatilities on Amgen 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 Amgen with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and AGNC INVESTMENT.
Diversification Opportunities for Amgen and AGNC INVESTMENT
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amgen and AGNC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and Amgen 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 Amgen Inc 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 Amgen i.e., Amgen and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between Amgen and AGNC INVESTMENT
Assuming the 90 days trading horizon Amgen Inc is expected to under-perform the AGNC INVESTMENT. In addition to that, Amgen is 2.45 times more volatile than AGNC INVESTMENT. It trades about -0.17 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.05 per unit of volatility. If you would invest 880.00 in AGNC INVESTMENT on October 10, 2024 and sell it today you would earn a total of 15.00 from holding AGNC INVESTMENT or generate 1.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.37% |
Values | Daily Returns |
Amgen Inc vs. AGNC INVESTMENT
Performance |
Timeline |
Amgen Inc |
AGNC INVESTMENT |
Amgen and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amgen and AGNC INVESTMENT
The main advantage of trading using opposite Amgen and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen 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.Amgen vs. AGNC INVESTMENT | Amgen vs. REINET INVESTMENTS SCA | Amgen vs. SILVER BULLET DATA | Amgen vs. MGIC INVESTMENT |
AGNC INVESTMENT vs. MidCap Financial Investment | AGNC INVESTMENT vs. ORMAT TECHNOLOGIES | AGNC INVESTMENT vs. Luckin Coffee | AGNC INVESTMENT vs. CHRYSALIS INVESTMENTS LTD |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |