Correlation Between ACRES Commercial and Ecc Cap
Can any of the company-specific risk be diversified away by investing in both ACRES Commercial and Ecc Cap 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 ACRES Commercial and Ecc Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACRES Commercial Realty and Ecc Cap Corp, you can compare the effects of market volatilities on ACRES Commercial and Ecc Cap 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 ACRES Commercial with a short position of Ecc Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACRES Commercial and Ecc Cap.
Diversification Opportunities for ACRES Commercial and Ecc Cap
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACRES and Ecc is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ACRES Commercial Realty and Ecc Cap Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecc Cap Corp and ACRES Commercial 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 ACRES Commercial Realty are associated (or correlated) with Ecc Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecc Cap Corp has no effect on the direction of ACRES Commercial i.e., ACRES Commercial and Ecc Cap go up and down completely randomly.
Pair Corralation between ACRES Commercial and Ecc Cap
If you would invest 2.00 in Ecc Cap Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Ecc Cap Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
ACRES Commercial Realty vs. Ecc Cap Corp
Performance |
| Timeline |
| ACRES Commercial Realty |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ACRES Commercial and Ecc Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACRES Commercial and Ecc Cap
The main advantage of trading using opposite ACRES Commercial and Ecc Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACRES Commercial position performs unexpectedly, Ecc Cap 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 Ecc Cap will offset losses from the drop in Ecc Cap's long position.| ACRES Commercial vs. ACRES Commercial Realty | ACRES Commercial vs. Dynex Capital | ACRES Commercial vs. PennyMac Mortgage Investment | ACRES Commercial vs. AG Mortgage Investment |
| Ecc Cap vs. Ready Capital Corp | Ecc Cap vs. Ellington Residential Mortgage | Ecc Cap vs. Ellington Financial | Ecc Cap vs. Dynex Capital |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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