Correlation Between AGNC Investment and Bluerock Residential
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Bluerock Residential 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 Bluerock Residential 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 Bluerock Residential Growth, you can compare the effects of market volatilities on AGNC Investment and Bluerock Residential 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 Bluerock Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Bluerock Residential.
Diversification Opportunities for AGNC Investment and Bluerock Residential
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AGNC and Bluerock is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Bluerock Residential Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Residential 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 Bluerock Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Residential has no effect on the direction of AGNC Investment i.e., AGNC Investment and Bluerock Residential go up and down completely randomly.
Pair Corralation between AGNC Investment and Bluerock Residential
If you would invest 2,660 in Bluerock Residential Growth on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Bluerock Residential Growth or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
AGNC Investment Corp vs. Bluerock Residential Growth
Performance |
| Timeline |
| AGNC Investment Corp |
| Bluerock Residential |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGNC Investment and Bluerock Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGNC Investment and Bluerock Residential
The main advantage of trading using opposite AGNC Investment and Bluerock Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Bluerock Residential 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 Bluerock Residential will offset losses from the drop in Bluerock Residential's long position.The idea behind AGNC Investment Corp and Bluerock Residential Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bluerock Residential vs. NeogamesSA | Bluerock Residential vs. National CineMedia | Bluerock Residential vs. Emerson Radio | Bluerock Residential vs. Avient Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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