Correlation Between AGNC Investment and Assurant

Can any of the company-specific risk be diversified away by investing in both AGNC Investment and Assurant 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 Assurant 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 Assurant, you can compare the effects of market volatilities on AGNC Investment and Assurant 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 Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGNC Investment and Assurant.

Diversification Opportunities for AGNC Investment and Assurant

-0.58

Correlation Coefficient

AGNC Investment  Assurant

Excellent diversification

The 3 months correlation between AGNC and Assurant is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant 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 Assurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assurant has no effect on the direction of AGNC Investment i.e., AGNC Investment and Assurant go up and down completely randomly.

Pair Corralation between AGNC Investment and Assurant

Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 0.77 times more return on investment than Assurant. However, AGNC Investment Corp is 1.3 times less risky than Assurant. It trades about 0.19 of its potential returns per unit of risk. Assurant is currently generating about -0.06 per unit of risk. If you would invest  835.00  in AGNC Investment Corp on May 6, 2025 and sell it today you would earn a total of  113.00  from holding AGNC Investment Corp or generate 13.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

AGNC Investment Corp  vs.  Assurant

AGNC Investment Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AGNC Investment Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, AGNC Investment exhibited solid returns over the last few months and may actually be approaching a breakup point.

Assurant

Risk-Adjusted Performance

Very Weak

Over the last 90 days Assurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Assurant is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AGNC Investment and Assurant

The main advantage of trading using opposite AGNC Investment and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGNC Investment position performs unexpectedly, Assurant 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 Assurant will offset losses from the drop in Assurant's long position.

The idea behind AGNC Investment Corp and Assurant 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.