Correlation Between Opus Bank and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Opus Bank 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 Opus Bank and AGNC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opus Bank and AGNC Investment Corp, you can compare the effects of market volatilities on Opus Bank 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 Opus Bank with a short position of AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opus Bank and AGNC Investment.
Diversification Opportunities for Opus Bank and AGNC Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Opus and AGNC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Opus Bank 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 Opus Bank 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 Opus Bank 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 Opus Bank i.e., Opus Bank and AGNC Investment go up and down completely randomly.
Pair Corralation between Opus Bank and AGNC Investment
If you would invest 930.00 in AGNC Investment Corp on January 25, 2024 and sell it today you would earn a total of 7.00 from holding AGNC Investment Corp or generate 0.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Opus Bank vs. AGNC Investment Corp
Performance |
Timeline |
Opus Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGNC Investment Corp |
Opus Bank and AGNC Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Opus Bank and AGNC Investment
The main advantage of trading using opposite Opus Bank and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opus Bank 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.Opus Bank vs. Saia Inc | Opus Bank vs. Wineco Productions | Opus Bank vs. Artisan Consumer Goods | Opus Bank vs. MGP Ingredients |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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