Correlation Between AGNC Investment and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref High Yield, you can compare the effects of market volatilities on AGNC Investment and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Tiaa Cref.
Diversification Opportunities for AGNC Investment and Tiaa Cref
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AGNC and Tiaa is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Tiaa Cref High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref High 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref High has no effect on the direction of AGNC Investment i.e., AGNC Investment and Tiaa Cref go up and down completely randomly.
Pair Corralation between AGNC Investment and Tiaa Cref
Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 5.11 times more return on investment than Tiaa Cref. However, AGNC Investment is 5.11 times more volatile than Tiaa Cref High Yield. It trades about 0.18 of its potential returns per unit of risk. Tiaa Cref High Yield is currently generating about 0.24 per unit of risk. If you would invest 856.00 in AGNC Investment Corp on May 2, 2025 and sell it today you would earn a total of 104.00 from holding AGNC Investment Corp or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGNC Investment Corp vs. Tiaa Cref High Yield
Performance |
| Timeline |
| AGNC Investment Corp |
| Tiaa Cref High |
AGNC Investment and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Tiaa Cref
The main advantage of trading using opposite AGNC Investment and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref'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 |
| Tiaa Cref vs. Transamerica Financial Life | Tiaa Cref vs. Financial Industries Fund | Tiaa Cref vs. Vanguard Financials Index | Tiaa Cref vs. Angel Oak Financial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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