Correlation Between AGNC INVESTMENT and Axfood AB
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Axfood AB 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 Axfood AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Axfood AB, you can compare the effects of market volatilities on AGNC INVESTMENT and Axfood AB 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 Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Axfood AB.
Diversification Opportunities for AGNC INVESTMENT and Axfood AB
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AGNC and Axfood is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB 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 are associated (or correlated) with Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Axfood AB go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Axfood AB
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.6 times more return on investment than Axfood AB. However, AGNC INVESTMENT is 1.66 times less risky than Axfood AB. It trades about 0.21 of its potential returns per unit of risk. Axfood AB is currently generating about 0.1 per unit of risk. If you would invest 771.00 in AGNC INVESTMENT on June 11, 2025 and sell it today you would earn a total of 103.00 from holding AGNC INVESTMENT or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Axfood AB
Performance |
| Timeline |
| AGNC INVESTMENT |
| Axfood AB |
AGNC INVESTMENT and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Axfood AB
The main advantage of trading using opposite AGNC INVESTMENT and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Axfood AB 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| AGNC INVESTMENT vs. BC TECHNOLOGY GROUP | AGNC INVESTMENT vs. Jacquet Metal Service | AGNC INVESTMENT vs. BACKBONE Technology AG | AGNC INVESTMENT vs. Harmony Gold Mining |
| Axfood AB vs. CVR Medical Corp | Axfood AB vs. PULSION Medical Systems | Axfood AB vs. The Peoples Insurance | Axfood AB vs. ONWARD MEDICAL BV |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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