Correlation Between AGNC Investment and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Accenture Plc 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 Accenture Plc 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 Accenture plc, you can compare the effects of market volatilities on AGNC Investment and Accenture Plc 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 Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Accenture Plc.
Diversification Opportunities for AGNC Investment and Accenture Plc
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AGNC and Accenture is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc 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 Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of AGNC Investment i.e., AGNC Investment and Accenture Plc go up and down completely randomly.
Pair Corralation between AGNC Investment and Accenture Plc
Given the investment horizon of 90 days AGNC Investment is expected to generate 1.33 times less return on investment than Accenture Plc. In addition to that, AGNC Investment is 1.2 times more volatile than Accenture plc. It trades about 0.01 of its total potential returns per unit of risk. Accenture plc is currently generating about 0.02 per unit of volatility. If you would invest 28,951 in Accenture plc on January 25, 2024 and sell it today you would earn a total of 2,732 from holding Accenture plc or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. Accenture plc
Performance |
| Timeline |
| AGNC Investment Corp |
| Accenture plc |
AGNC Investment and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Accenture Plc
The main advantage of trading using opposite AGNC Investment and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.| AGNC Investment vs. Ellington Financial LLC | AGNC Investment vs. Ares Commercial Real | AGNC Investment vs. Cherry Hill Mortgage | AGNC Investment vs. Franklin BSP Realty |
| Accenture Plc vs. CACI International | Accenture Plc vs. CDW Corp | Accenture Plc vs. Jack Henry Associates | Accenture Plc vs. Broadridge Financial Solutions |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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