Correlation Between KINDER and AG Mortgage
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By analyzing existing cross correlation between KINDER MORGAN ENERGY and AG Mortgage Investment, you can compare the effects of market volatilities on KINDER and AG Mortgage 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 KINDER with a short position of AG Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of KINDER and AG Mortgage.
Diversification Opportunities for KINDER and AG Mortgage
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KINDER and MITP is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding KINDER MORGAN ENERGY and AG Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Mortgage Investment and KINDER 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 KINDER MORGAN ENERGY are associated (or correlated) with AG Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Mortgage Investment has no effect on the direction of KINDER i.e., KINDER and AG Mortgage go up and down completely randomly.
Pair Corralation between KINDER and AG Mortgage
Assuming the 90 days trading horizon KINDER MORGAN ENERGY is expected to under-perform the AG Mortgage. In addition to that, KINDER is 5.68 times more volatile than AG Mortgage Investment. It trades about -0.19 of its total potential returns per unit of risk. AG Mortgage Investment is currently generating about 0.11 per unit of volatility. If you would invest 2,489 in AG Mortgage Investment on October 10, 2024 and sell it today you would earn a total of 47.00 from holding AG Mortgage Investment or generate 1.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 77.42% |
Values | Daily Returns |
KINDER MORGAN ENERGY vs. AG Mortgage Investment
Performance |
Timeline |
KINDER MORGAN ENERGY |
AG Mortgage Investment |
KINDER and AG Mortgage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KINDER and AG Mortgage
The main advantage of trading using opposite KINDER and AG Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KINDER position performs unexpectedly, AG Mortgage 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 AG Mortgage will offset losses from the drop in AG Mortgage's long position.KINDER vs. AG Mortgage Investment | KINDER vs. Gfl Environmental Holdings | KINDER vs. Energy and Environmental | KINDER vs. SEI Investments |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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