Correlation Between FORWARD AIR and AGNC INVESTMENT

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Can any of the company-specific risk be diversified away by investing in both FORWARD 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 FORWARD 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 FORWARD AIR P and AGNC INVESTMENT, you can compare the effects of market volatilities on FORWARD 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 FORWARD AIR with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and AGNC INVESTMENT.

Diversification Opportunities for FORWARD AIR and AGNC INVESTMENT

FORWARDAGNCDiversified AwayFORWARDAGNCDiversified Away100%
-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between FORWARD and AGNC is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and FORWARD 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 FORWARD AIR P 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 FORWARD AIR i.e., FORWARD AIR and AGNC INVESTMENT go up and down completely randomly.

Pair Corralation between FORWARD AIR and AGNC INVESTMENT

Assuming the 90 days horizon FORWARD AIR P is expected to under-perform the AGNC INVESTMENT. In addition to that, FORWARD AIR is 3.62 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 0.02 per unit of volatility. If you would invest  913.00  in AGNC INVESTMENT on October 21, 2024 and sell it today you would earn a total of  9.00  from holding AGNC INVESTMENT or generate 0.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

FORWARD AIR P  vs.  AGNC INVESTMENT

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-50510
JavaScript chart by amCharts 3.21.15FA2 4OQ1
       Timeline  
FORWARD AIR P 

Risk-Adjusted Performance

0 of 100

 
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Very Weak
Over the last 90 days FORWARD AIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FORWARD AIR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan282930313233343536
AGNC INVESTMENT 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in AGNC INVESTMENT are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan8.48.68.899.29.4

FORWARD AIR and AGNC INVESTMENT Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.36-10.76-7.15-3.550.043.527.1510.7914.4318.07 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15FA2 4OQ1
       Returns  

Pair Trading with FORWARD AIR and AGNC INVESTMENT

The main advantage of trading using opposite FORWARD AIR and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD 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.
The idea behind FORWARD AIR P and AGNC INVESTMENT 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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