Correlation Between AGNC Investment and Multifactor

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

Diversification Opportunities for AGNC Investment and Multifactor

0.59

Correlation Coefficient

AGNC Investment  Multifactor

Very weak diversification

The 3 months correlation between AGNC and Multifactor is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AGNC Investment Corp and Multifactor Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multifactor Equity 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 Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multifactor Equity has no effect on the direction of AGNC Investment i.e., AGNC Investment and Multifactor go up and down completely randomly.

Pair Corralation between AGNC Investment and Multifactor

Given the investment horizon of 90 days AGNC Investment Corp is expected to generate 1.3 times more return on investment than Multifactor. However, AGNC Investment is 1.3 times more volatile than Multifactor Equity Fund. It trades about 0.08 of its potential returns per unit of risk. Multifactor Equity Fund is currently generating about 0.08 per unit of risk. If you would invest  982.00  in AGNC Investment Corp on September 12, 2025 and sell it today you would earn a total of  48.00  from holding AGNC Investment Corp or generate 4.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

AGNC Investment Corp  vs.  Multifactor Equity Fund

AGNC Investment Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in AGNC Investment Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, AGNC Investment is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Multifactor Equity

Risk-Adjusted Performance

Mild

Over the last 90 days Multifactor Equity Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Multifactor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AGNC Investment and Multifactor

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

The idea behind AGNC Investment Corp and Multifactor Equity Fund 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 Global Correlations module to find global opportunities by holding instruments from different markets.