Correlation Between AGNC Investment and DGAZ
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and DGAZ 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 DGAZ 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 DGAZ, you can compare the effects of market volatilities on AGNC Investment and DGAZ 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 DGAZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and DGAZ.
Diversification Opportunities for AGNC Investment and DGAZ
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGNC and DGAZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and DGAZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGAZ 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 DGAZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGAZ has no effect on the direction of AGNC Investment i.e., AGNC Investment and DGAZ go up and down completely randomly.
Pair Corralation between AGNC Investment and DGAZ
If you would invest (100.00) in DGAZ on January 17, 2024 and sell it today you would earn a total of 100.00 from holding DGAZ or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. DGAZ
Performance |
| Timeline |
| AGNC Investment Corp |
| DGAZ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGNC Investment and DGAZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and DGAZ
The main advantage of trading using opposite AGNC Investment and DGAZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, DGAZ 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 DGAZ will offset losses from the drop in DGAZ's long position.| AGNC Investment vs. Two Harbors Investments | AGNC Investment vs. Chimera Investment | AGNC Investment vs. ARMOUR Residential REIT | AGNC Investment vs. Arbor Realty Trust |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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