Correlation Between Arlington Asset and Great Ajax
Can any of the company-specific risk be diversified away by investing in both Arlington Asset and Great Ajax 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 Arlington Asset and Great Ajax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arlington Asset Investment and Great Ajax Corp, you can compare the effects of market volatilities on Arlington Asset and Great Ajax 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 Arlington Asset with a short position of Great Ajax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arlington Asset and Great Ajax.
Diversification Opportunities for Arlington Asset and Great Ajax
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arlington and Great is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Arlington Asset Investment and Great Ajax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Ajax Corp and Arlington Asset 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 Arlington Asset Investment are associated (or correlated) with Great Ajax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Ajax Corp has no effect on the direction of Arlington Asset i.e., Arlington Asset and Great Ajax go up and down completely randomly.
Pair Corralation between Arlington Asset and Great Ajax
If you would invest 469.00 in Arlington Asset Investment on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Arlington Asset Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Arlington Asset Investment vs. Great Ajax Corp
Performance |
| Timeline |
| Arlington Asset Inve |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Great Ajax Corp |
Arlington Asset and Great Ajax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arlington Asset and Great Ajax
The main advantage of trading using opposite Arlington Asset and Great Ajax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arlington Asset position performs unexpectedly, Great Ajax 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 Great Ajax will offset losses from the drop in Great Ajax's long position.| Arlington Asset vs. ACRES Commercial Realty | Arlington Asset vs. ACRES Commercial Realty | Arlington Asset vs. Cherry Hill Mortgage | Arlington Asset vs. Nexpoint Real Estate |
| Great Ajax vs. Ellington Financial | Great Ajax vs. Dynex Capital | Great Ajax vs. Ares Commercial Real | Great Ajax vs. Cherry Hill Mortgage |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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