Correlation Between AGNC Investment and Blackstone
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC Investment Corp and Blackstone Group, you can compare the effects of market volatilities on AGNC Investment and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Blackstone.
Diversification Opportunities for AGNC Investment and Blackstone
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGNC and Blackstone is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Corp are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of AGNC Investment i.e., AGNC Investment and Blackstone go up and down completely randomly.
Pair Corralation between AGNC Investment and Blackstone
Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 0.7 times more return on investment than Blackstone. However, AGNC Investment Corp is 1.43 times less risky than Blackstone. It trades about 0.07 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.03 per unit of risk. If you would invest 918.00 in AGNC Investment Corp on February 12, 2024 and sell it today you would earn a total of 48.00 from holding AGNC Investment Corp or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. Blackstone Group
Performance |
| Timeline |
| AGNC Investment Corp |
| Blackstone Group |
AGNC Investment and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Blackstone
The main advantage of trading using opposite AGNC Investment and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.The idea behind AGNC Investment Corp and Blackstone Group 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.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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