Correlation Between AGNC Investment and ConAgra Foods
Can any of the company-specific risk be diversified away by investing in both AGNC Investment and ConAgra Foods 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 ConAgra Foods 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 ConAgra Foods, you can compare the effects of market volatilities on AGNC Investment and ConAgra Foods 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 ConAgra Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and ConAgra Foods.
Diversification Opportunities for AGNC Investment and ConAgra Foods
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGNC and ConAgra is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and ConAgra Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Foods 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 ConAgra Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Foods has no effect on the direction of AGNC Investment i.e., AGNC Investment and ConAgra Foods go up and down completely randomly.
Pair Corralation between AGNC Investment and ConAgra Foods
Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 1.57 times more return on investment than ConAgra Foods. However, AGNC Investment is 1.57 times more volatile than ConAgra Foods. It trades about 0.02 of its potential returns per unit of risk. ConAgra Foods is currently generating about -0.01 per unit of risk. If you would invest 934.00 in AGNC Investment Corp on December 30, 2023 and sell it today you would earn a total of 56.00 from holding AGNC Investment Corp or generate 6.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AGNC Investment Corp vs. ConAgra Foods
Performance |
Timeline |
AGNC Investment Corp |
ConAgra Foods |
AGNC Investment and ConAgra Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AGNC Investment and ConAgra Foods
The main advantage of trading using opposite AGNC Investment and ConAgra Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, ConAgra Foods 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 ConAgra Foods will offset losses from the drop in ConAgra Foods' long position.AGNC Investment vs. AG Mortgage Investment | AGNC Investment vs. AG Mortgage Investment | AGNC Investment vs. AG Mortgage Investment | AGNC Investment vs. AG Mortgage Investment |
ConAgra Foods vs. Natural Alternatives International | ConAgra Foods vs. Natures Sunshine Products | ConAgra Foods vs. Nocera Inc | ConAgra Foods vs. Borealis Foods |
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.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |