Correlation Between AGNC Investment and Ultrashort Mid-cap
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Ultrashort Mid-cap 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 Ultrashort Mid-cap 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 Ultrashort Mid Cap Profund, you can compare the effects of market volatilities on AGNC Investment and Ultrashort Mid-cap 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 Ultrashort Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Ultrashort Mid-cap.
Diversification Opportunities for AGNC Investment and Ultrashort Mid-cap
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGNC and Ultrashort is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Ultrashort Mid Cap Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultrashort Mid Cap 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 Ultrashort Mid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultrashort Mid Cap has no effect on the direction of AGNC Investment i.e., AGNC Investment and Ultrashort Mid-cap go up and down completely randomly.
Pair Corralation between AGNC Investment and Ultrashort Mid-cap
Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 0.63 times more return on investment than Ultrashort Mid-cap. However, AGNC Investment Corp is 1.58 times less risky than Ultrashort Mid-cap. It trades about 0.05 of its potential returns per unit of risk. Ultrashort Mid Cap Profund is currently generating about -0.03 per unit of risk. If you would invest 744.00 in AGNC Investment Corp on June 5, 2025 and sell it today you would earn a total of 248.50 from holding AGNC Investment Corp or generate 33.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AGNC Investment Corp vs. Ultrashort Mid Cap Profund
Performance |
| Timeline |
| AGNC Investment Corp |
| Ultrashort Mid Cap |
AGNC Investment and Ultrashort Mid-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Ultrashort Mid-cap
The main advantage of trading using opposite AGNC Investment and Ultrashort Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Ultrashort Mid-cap 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 Ultrashort Mid-cap will offset losses from the drop in Ultrashort Mid-cap'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 |
| Ultrashort Mid-cap vs. Goldman Sachs Small | Ultrashort Mid-cap vs. Fidelity Small Cap | Ultrashort Mid-cap vs. Vanguard Small Cap Value | Ultrashort Mid-cap vs. American Century Etf |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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