Correlation Between AGNC INVESTMENT and Avis Budget
Can any of the company-specific risk be diversified away by investing in both AGNC INVESTMENT and Avis Budget 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 Avis Budget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGNC INVESTMENT and Avis Budget Group, you can compare the effects of market volatilities on AGNC INVESTMENT and Avis Budget 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 Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC INVESTMENT and Avis Budget.
Diversification Opportunities for AGNC INVESTMENT and Avis Budget
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGNC and Avis is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AGNC INVESTMENT and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget 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 are associated (or correlated) with Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of AGNC INVESTMENT i.e., AGNC INVESTMENT and Avis Budget go up and down completely randomly.
Pair Corralation between AGNC INVESTMENT and Avis Budget
Assuming the 90 days trading horizon AGNC INVESTMENT is expected to generate 0.37 times more return on investment than Avis Budget. However, AGNC INVESTMENT is 2.74 times less risky than Avis Budget. It trades about 0.11 of its potential returns per unit of risk. Avis Budget Group is currently generating about -0.07 per unit of risk. If you would invest 774.00 in AGNC INVESTMENT on July 8, 2025 and sell it today you would earn a total of 68.00 from holding AGNC INVESTMENT or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC INVESTMENT vs. Avis Budget Group
Performance |
| Timeline |
| AGNC INVESTMENT |
| Avis Budget Group |
AGNC INVESTMENT and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC INVESTMENT and Avis Budget
The main advantage of trading using opposite AGNC INVESTMENT and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC INVESTMENT position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| AGNC INVESTMENT vs. Eurasia Mining Plc | AGNC INVESTMENT vs. Monument Mining Limited | AGNC INVESTMENT vs. ANGLO ASIAN MINING | AGNC INVESTMENT vs. Delta Air Lines |
| Avis Budget vs. Ashtead Group plc | Avis Budget vs. AMERCO | Avis Budget vs. ALD SA | Avis Budget vs. Sixt SE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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