Correlation Between Comcast Corp and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and AGNC Investment 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 Comcast Corp and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and AGNC Investment Corp, you can compare the effects of market volatilities on Comcast Corp and AGNC Investment 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 Comcast Corp with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and AGNC Investment.
Diversification Opportunities for Comcast Corp and AGNC Investment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Comcast and AGNC is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and AGNC Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC Investment Corp and Comcast Corp 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 Comcast Corp are associated (or correlated) with AGNC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC Investment Corp has no effect on the direction of Comcast Corp i.e., Comcast Corp and AGNC Investment go up and down completely randomly.
Pair Corralation between Comcast Corp and AGNC Investment
Assuming the 90 days horizon Comcast Corp is expected to under-perform the AGNC Investment. In addition to that, Comcast Corp is 1.04 times more volatile than AGNC Investment Corp. It trades about -0.08 of its total potential returns per unit of risk. AGNC Investment Corp is currently generating about -0.02 per unit of volatility. If you would invest 935.00 in AGNC Investment Corp on January 21, 2024 and sell it today you would lose (20.00) from holding AGNC Investment Corp or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. AGNC Investment Corp
Performance |
| Timeline |
| Comcast Corp |
| AGNC Investment Corp |
Comcast Corp and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and AGNC Investment
The main advantage of trading using opposite Comcast Corp and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, AGNC Investment 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 AGNC Investment will offset losses from the drop in AGNC Investment's long position.| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
| AGNC Investment vs. Two Harbors Investments | AGNC Investment vs. Chimera Investment | AGNC Investment vs. ARMOUR Residential REIT | AGNC Investment vs. Arbor Realty Trust |
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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