Correlation Between AGNC Investment and DB Gold

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

Diversification Opportunities for AGNC Investment and DB Gold

-0.22

Correlation Coefficient

AGNC Investment  DB Gold

Very good diversification

The 3 months correlation between AGNC and DGZ is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and DB Gold Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Gold Short 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 DB Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Gold Short has no effect on the direction of AGNC Investment i.e., AGNC Investment and DB Gold go up and down completely randomly.

Pair Corralation between AGNC Investment and DB Gold

Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 0.56 times more return on investment than DB Gold. However, AGNC Investment Corp is 1.78 times less risky than DB Gold. It trades about 0.22 of its potential returns per unit of risk. DB Gold Short is currently generating about 0.02 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  128.00  from holding AGNC Investment Corp or generate 15.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGNC Investment Corp  vs.  DB Gold Short

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 17 (%) 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.

DB Gold Short

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DB Gold Short are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, DB Gold is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AGNC Investment and DB Gold

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

The idea behind AGNC Investment Corp and DB Gold Short 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.