Correlation Between AG Mortgage and Werewolf Therapeutics
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Werewolf Therapeutics 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 AG Mortgage and Werewolf Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Werewolf Therapeutics, you can compare the effects of market volatilities on AG Mortgage and Werewolf Therapeutics 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 AG Mortgage with a short position of Werewolf Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Werewolf Therapeutics.
Diversification Opportunities for AG Mortgage and Werewolf Therapeutics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MITP and Werewolf is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Werewolf Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Werewolf Therapeutics and AG Mortgage 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 AG Mortgage Investment are associated (or correlated) with Werewolf Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Werewolf Therapeutics has no effect on the direction of AG Mortgage i.e., AG Mortgage and Werewolf Therapeutics go up and down completely randomly.
Pair Corralation between AG Mortgage and Werewolf Therapeutics
Given the investment horizon of 90 days AG Mortgage Investment is expected to generate 0.04 times more return on investment than Werewolf Therapeutics. However, AG Mortgage Investment is 27.31 times less risky than Werewolf Therapeutics. It trades about 0.14 of its potential returns per unit of risk. Werewolf Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 2,462 in AG Mortgage Investment on September 1, 2025 and sell it today you would earn a total of 48.00 from holding AG Mortgage Investment or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Werewolf Therapeutics
Performance |
| Timeline |
| AG Mortgage Investment |
| Werewolf Therapeutics |
AG Mortgage and Werewolf Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Werewolf Therapeutics
The main advantage of trading using opposite AG Mortgage and Werewolf Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Werewolf Therapeutics 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 Werewolf Therapeutics will offset losses from the drop in Werewolf Therapeutics' long position.| AG Mortgage vs. Selective Insurance Group | AG Mortgage vs. ePlay Digital | AG Mortgage vs. Safety Insurance Group | AG Mortgage vs. SportsHero Limited |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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